How David Kim and Jerome Fink led The Bascom Group through the real estate crash

David Kim, managing partner, The Bascom Group

David Kim, managing partner, The Bascom Group

 

Jerome Fink, managing partner, The Bascom Group

Jerome Fink, managing partner, The Bascom Group

Real Estate & Hospitality

FINALIST

David Kim and Jerome Fink co-founded The Bascom Group, a private equity firm primarily specializing in value-added multifamily real estate investments, in 1996. At the time they acquired their first multi-unit property, California was facing a foreclosure and job crisis. The market was unstable and investors were weary, but the two went on to develop in markets across the U.S.

The two again encountered challenges during the recent financial downturn. They were able to overcome them by piecing together a different organizational structure that essentially kept all employees on the job. In a period in which transactions were scarce, Kim and Fink assigned new roles to each acquisitions member, roles that consisted of supporting an operations team counterpart with revenue and expense management.

In addition, the duo renegotiated with lenders to avoid financial troubles with their loan-based investments and properties. They restructured their loans and optimized their equity, which allowed them to make more strategic buys of distressed properties.

These and other strategies led Bascom to an 8 to 12 percent increase in operating profits between 2008 and 2010.

Kim and Fink always take care of their employees, providing them with the opportunity to have an equity stake in their real estate funds, which promotes a sense of working toward a common goal.

They both believe that investing in people, talent and the community will enable continued and sustainable growth, with particular focus on health, wealth, education and lifestyle.

Giving back to the community is a key success factor for Bascom that provides a symbiotic relationship between the community and the company. When the community prospers, their properties benefit, which leads to wealth creation for the company.

How to reach: The Bascom Group, www.bascomgroup.com

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