Irvine-based real estate investor Bascom Group has acquired the 474-unit Tennis Club Apartments in the San Fernando Valley's Warner Center commercial district. Bascom and its unidentified institutional financial partner last week bought the 30-year-old property from a limited partnership known as Warner Center Group for $41 million, or about $86,500 per unit.
The new owners will invest an additional $3 million for improvements to units and common spaces, said Jerry Fink, a Bascom managing director. The complex at 22100 Erwin St. comprises six four-story buildings.
With apartment rents throughout the Southland climbing, Fink and company expect Tennis Club to generate substantially more revenue within about three years. Tennis Club's mostly one- and two-bedroom units now rent for about $720 to $1,400, with the newest tenants typically paying $950 and above.
San Fernando Valley apartment values have risen during the last several months, said Jon Tull, research manager with the Encino office of brokerage Marcus & Millichap.