Avison Young Negotiates $34M CA Acquisition
- Feb 13, 2017
Los Angeles—Commercial real estate services firm Avison Young has brokered the $33.9 million acquisition of Legends at Rancho Belago, a 206-unit Moreno Valley, Calif., apartment property. Los Angeles-based Avison Young Principal Peter Sherman represented the 1031 Exchange buyer, Cherry Heights LLC.
Located at 13292 Lasselle Street, Legends at Rancho Belago was built in 1993 as a 40-unit for-sale condominium property. The remaining 166 residences were added in 2006. The property as a whole began operating as a rental community in February 2016.
The biggest challenge Avison Young faced was a looming deadline. “We were on an extremely tight clock and the goal was to get under contract with an acquisition that fit the strategic goals of the client prior to the identification date for the 1031 exchange,” Sherman told MHN.
“We targeted and went after multiple properties off market and on market. Legends at Rancho Belago was a perfect fit strategically and was being sold by an outstanding company, The Reliant Group, with a trusted reputation. When time is the hurdle, you want to get the property and the owner right.”
“My client is pursuing a specific strategy with its portfolio of multifamily properties, and I think my approach was appreciated,” Sherman observed.
Situated on a 13.22-acre parcel, the property is a low-density, garden-style community. Unit mix consists of 42 one-bedroom, one-bath units and 164 two-bedroom, two-bath residences. On-site amenities include a resort-style swimming pool and Jacuzzi, fitness center, clubhouse, playground, barbecue and picnic areas and controlled-access entry.
Due to robust demand drivers in Moreno Valley, the property is well positioned to enjoy future rent growth, Sherman noted. This area of the Inland Empire is witnessing vibrant population growth, the result of a tide of new, higher-paying jobs. Those positions result from development of new logistics centers, such as an approximately 2 million-square-foot Amazon center, and an increasing concentration of medical services and education provided by the Riverside University Health System and Kaiser Permanente.
The seller, The Reliant Group, represented by Institutional Property Advisors, recently upgraded numerous units and brought to completion a substantial clubhouse renovation and expansion. The buyer plans to improve upon the current renovations, in an effort to meet surging consumer demand for quality rental residences in the market.
“My approach is to have deeper, ongoing partnerships with fewer clients where we work together to drive their strategy forward,” Sherman said. “Whether the need at the time is updating their strategic direction or transactional buying, selling, securing debt or equity, my Avison Young colleagues and I are able to act quickly and collectively to devote ourselves and fulfill our promise to the client. Our team has a strong breadth of understanding, expertise and relationships in the institutional multifamily and mixed-use world, and we are relentless in order to perform to client expectations.”