January 13, 2022 | Baltimore, MD/Los Angeles, CA — Base Equities, a Los Angeles-based private equity firm that specializes in providing preferred equity to established sponsors in commercial real estate assets across the United States, has announced a strategic joint venture partnership with Alex. Brown Realty (ABR), an independent real estate investment manager specializing in value-add, opportunistic, and core-plus investments in the middle market.
ABR Chesapeake Fund VI, a value-added real estate fund sponsored by ABR, has committed $26 million to Base Equities’ strategy, which is focused on providing small-balance ($1-5 million) preferred equity for commercial real estate investments, with an emphasis on value-add multifamily transactions in the $5-30 million range. Base Preferred Equity Fund I is continuing to raise capital and is on track to achieve its target of $50 million in commitments dedicated to the strategy, according to Michael Bastan, a Co-Founder and Principal at Base Equities alongside Eli Moghavem.
“We are delighted to embark on this synergistic relationship with an institutional-level partner who truly understands the value of the opportunities presented by our niche fund strategy,” says Bastan. “A respected firm with 50 years of real estate experience, ABR’s team brings vast experience in middle-market investments and joint venture partnerships, with a stellar record of returns to investors. Drawing upon this expertise, as well as existing resources and relationships in the fundraising, investment, and marketing spaces, will help to accelerate and strengthen the successful execution of our business plan.”
“The Base Equities team has identified an underserved need for reliable equity partners providing preferred equity investments of $1-5 million,” says Tom Burton, Senior Managing Director and Chief Investment Officer of ABR. “Based on this forward-thinking strategy and well-aligned values and experience, including target assets in several overlapping growth markets, we believe this partnership is an ideal fit,” adds Burton.
Moghavem notes that the fund is targeting an attractive risk-adjusted return, generated from in-place cash flows, up-front payment reserves, and appreciation realized after the implementation of approved value-add programs. A lack of small-balance preferred equity providers allows Base Equities to be selective with its investments.
“We look forward to continuing to raise capital within this fund and deploy it with ABR as our investment partner,” explains Moghavem. “Our fund’s dedication to preferred equity, which takes priority in the capital stack, offers investors the opportunity to be insulated from loss while receiving current cash flow and participating in the upside of the value-add strategy. This strategy, along with proactive asset management, allows us to detect any potential issues and effectively intervene, giving stakeholders an added layer of protection.”
Baird served as the exclusive financial advisor to Base Equities on this transaction. For more information on Base Preferred Equity Fund I, email firstname.lastname@example.org or call (310) 817-0524.
Base Equities is a Los Angeles-based private equity investment company specializing in providing preferred equity to established sponsors in commercial real estate assets across the United States.
The principals of Base Equities are Michael Bastan and Eli Moghavem, who have closed a combined total of nearly $1 billion of real estate debt on value-add transactions and have acquired over $350 million of real estate and non-performing loans nationwide.
Alex. Brown Realty (ABR) is an independent real estate investment manager specializing in value-add, opportunistic, and core-plus investments in the middle market. The firm was founded in 1972 by the partners of Alex. Brown & Sons, a Baltimore-based investment bank organized in 1800. Since the inception of the firm, ABR has acquired over $4 billion of assets, representing over 400 transactions. ABR has sponsored five real estate funds and is currently marketing its sixth fund. The firm is an SEC-registered investment advisor. www.abrealty.com
The Base Equities sponsored fund is a 506(c), for verified accredited investors only. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements. Past and current performance is not indicative of future results. Target and projected returns are not guaranteed.
Thomas R. Burton
Alex. Brown Realty, Inc.