Upland, Calif.—JB Matteson, a division of real estate investment and management company Matteson Companies, has acquired a Class A apartment community in Upland, Calif. for $26.45 million from Invesco Real Estate.
Originally called the Broadstone Foothills Apartments, the 128-unit property will be renamed Park Central Apartments. In addition to its re-branding, the property will be repainted and receive new appliances, and common areas will be refurbished.
“Although the impacts of the recession were deeply felt in the Inland Empire, the recovery is clearly underway with both job growth and rents on the upswing,” John Bellack, president of JB Matteson Inc., tells MHN. “Park Central is in line with our investment strategy focused on properties built in the 2000s or newer, with 100 units or greater, located in vibrant West Coast markets with strong employment drivers and demographic characteristics.”
Located at 524 North Central Ave., the community comprises seven buildings on a 6.39-acre parcel. Park Central provides a mix of one-, two- and three-bedroom apartments ranging from 759 sq. ft. to 1,196 sq. ft. There are 64 carports on-site, as well as 66 detached garage spaces and 185 open parking spaces.
According to Matt Matteson, president of Matteson Realty Services, the company has capitalized on the low interest rate environment by financing the acquisitions with long-term, fixed-rate loans in the high 3 percent range, predominantly with full term interest only. Leverage has been modest—typically around 60 percent.
“Matteson targets 5.5 percent or greater cash flow returns, which are enhanced by significant tax shelter from depreciation. Multifamily investments demonstrate compelling long-term performance characteristics. With revenue increasing and the fixed cost of long-term debt, the returns become more attractive over time,” Matterson tells MHN. “The investment performance of our existing multifamily portfolio has been excellent, and we expect solid investment performance from these new investments over the long term.”
Some units have vaulted ceiling areas and fireplaces, and all have nine-foot ceilings, modern appliances, washers and dryers, and walk-in closets. Each apartment also has a private patio or balcony.
Park Central is on the western edge of the Inland Empire between two major arterials going west into Los Angeles (1-10) or Pasadena/Burbank (210) or east toward Riverside and San Bernardino.
“Los Angeles is an attractive investment market right now with improving job growth and a normal amount new supply,” Bellack says. “The market is earlier in the rent recovery cycle than some of the other core markets on the West Coast.”
E&S Ring Management Corporation, which manages other JB Matteson multifamily assets, will provide the local property management services.