Archway Equities Acquires Inland Empire Property for $150M
The deal is 2023’s largest SoCal transaction to date.
Archway Equities has acquired a Southern California community, The Paseos at Montclair North, from 4914 Olive Street Properties LLC.
Situated in the Inland Empire city of Montclair, Calif., the 385-unit townhouse community was purchased for $150 million, a figure representing the largest single multifamily transaction in Southern California so far this year. Paseos at Montclair North is Archway’s first multifamily investment in the Golden State.
Located at 4914 Olive Street near the San Gabriel Valley, the property is a garden-style community spanning nearly two full city blocks. Units are a mix of studio, one-, two- and three-bedroom Santa Barbara-inspired townhomes offering dual-pane windows, oversized closets and Moen faucets, with soaking tubs in select units.
“The biggest challenge in completing the transaction was having conviction to move forward with such a large investment at that point in time,” Sankeerth Pulusani, Archway Equities’ managing partner, told Multi-Housing News.
“California was still coming out of various rent and eviction moratoriums and interest rates were increasing at a historic pace. We were able to assume the in-place agency financing, which was superior to new debt available at the time. The asset itself benefits from large, townhome-style units with garages, and a majority being two- and three-bedroom, we feel the larger units will do better during recessionary periods.”
None of the residential units in the community have been upgraded since 2014, when the property was completed. Archway plans a number of enhancements to the property, which will include the addition of a coworking space, a minor renovation of the amenity areas and the incorporation of designer touches within the interiors of the residences.
The Paseos at Montclair North is the single largest of the 546 multifamily transactions to close this year in Southern California and only the second deal of the year exceeding $100 million. Archway assumed the accretive in-place agency loan, which has five years remaining the on term.
The property’s location proximate to Interstates 10 and 210 offers access to Los Angeles and to the employment hubs within the fast-growing Inland Empire. Montclair Transit Center is located nearby, offering bus and train transit through the area. Several months ago, Archway Equities acquired Toscana Apartments in the Dallas suburb of Carrollton, Texas.