Inland Empire Community Changes Hands for $40M
Providence Capital sold the 212-unit Vista Springs property in Moreno Valley, Calif.
Crystal Asset Management has purchased the 212-unit Vista Springs from Providence Capital for $39.5 million. NorthMarq, who represented Crystal, also arranged a non-recourse, interest-only bridge loan with a rate in the low four percent range that will fund the new owners’ renovation plans.
Located at 21550 Box Springs Road in Moreno Valley, Calif., Vista Springs features one- and two-bedroom units in a garden-style multifamily property. While residents get a washer/dryer and central heating and air in their units, the building also offers a fitness center, playground, swimming pool, two spas and an on-site leasing office.
According to Yardi Matrix data, Vista Springs is 98.1 percent occupied and residents pay an average rent of $1,410. Rent prices also have grown steadily since Providence Capital purchased the apartment community in 2015 for $27.6 million from PICOA with the help of a $24 million loan, Yardi Matrix data shows.
While Providence Capital didn’t have a broker in this transaction, NorthMarq’s Kyle Pinkalla and Shane Shafer represented the seller. Pinkalla said Crystal is planning to renovate the property in order for it to compete against the newer vintage properties in Moreno Valley.
Pinkalla and Shafer also arranged another deal in California where a private investor purchased a 264-unit multifamily property in Santa Ana for $98 million.
DWG Capital Group President & Partner Judd Dunning and Newmark Knight Frank’s Managing Director of Capital Markets Brian Bowis closed a Programmatic Equity JV with an initial $25 million investment with JCR Capital on behalf of Crystal.
RENT GROWTH IN THE INLAND EMPIRE
Vista Springs is likely to see growing returns in the long run as the Inland Empire is continuing to see higher rents, according to a Yardi Matrix fall report on the market.
According to the report, rents in the Inland Empire increased 4.5 percent year-over-year through August, hitting $1,561 and outpacing the national average by 3.3 percent. The rent growth is likely due to the low supply of 503 units added last year and the occupancy rate stabilizing at more than 96 percent, according to the report.
Developers are trying to catch up with the demand and had 4,481 units in the pipeline as of August, the report noted. While the Inland Empire’s development pace is below the national average, the metro’s development pipeline still includes more than 13,900 units that are still in the planning and permits stage.