Advanced Real Estate Pays $56M for Inland Empire Asset
The buyer also assumed an existing Freddie Mac loan.
Advanced Real Estate has acquired the 253-unit Casitas Apartment Homes in Ontario, Calif., for $56.2 million. The Mogharebi Group represented the seller, which Yardi Matrix data identified as Benedict Canyon Equities.
Advanced also assumed the property’s existing debt. The Freddie Mac $33.2 million loan, originated by Optigo lender KeyBank in 2020, carries an interest rate of 3.11 percent and is due in 2030, the same data provider shows.
The Casitas acquisition closed through Advanced’s X Fund, which operates by purchasing stakes in assets across Southern California and subsequently engaging in 1031 tax-deferred exchanges of the smaller properties into larger communities. Equity from 13 smaller properties was used to buy Casitas, according to prepared remarks by Advanced Real Estate President Paul Julian.
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The garden-style community debuted in 1963, and Benedict Canyon Equities renovated it in 2020. Floorplans include one- and two-bedroom layouts that average 626 square feet. Amenities at the property, which also features 27 affordable units, consist of a playground and picnic and barbecue areas.
Located on nearly 15 acres at 1900 S. Campus Ave., Casitas is more than 1 mile from the interchange between U.S. routes 60 and 83. A large industrial employment center is just across the street, serving the nearby Ontario International Airport where companies such as Amazon, FedEx and UPS operate.
The Mogharebi Group Executive Vice President Otto Ozen and Vice President Jordan Pakzad led the transaction on behalf of the seller.
Inland Empire’s stellar multifamily investment score
The Inland Empire logged nearly $1.1 billion in multifamily sales during the third quarter, according to a report by Matthews, a volume is five times higher than the previous four-quarter average. However, the spike is likely attributed to the entity-level activity that emerged during the AvalonBay and Equity Residential merger.
However, other top multifamily owners conducted business across the market as well. In Ontario, the 469-unit Landara traded as part of BlackRock and CalSTRS’ $1.6 billion portfolio acquisition, Yardi Matrix data shows. Camden Property Trust sold the 11-property California collection in July.
