Top 10 Inland Empire Multifamily Transactions
- Oct 12, 2018
Investment activity in the Inland Empire’s multifamily sector is slowing down after three years of strong capital flow. A total of 35 properties changed hands in the 12 months ending in October, for a total of $929.9 million, according to Yardi Matrix. The average price per unit, at $156,020, managed to rise above the national average of $147,630.
Rising property prices in the Inland Empire is partly due to the low development activity. Currently, there are only 18 properties underway in the entire market, totaling 3,713 units. Of those, only seven properties are slated for a 2018 completion. As of October, 227 units were delivered, representing approximately 0.15 percent of total stock.
Following is a list of the largest transactions by dollar amount, completed this year, based on data provided by Yardi Matrix.
The 86-unit Ontario changed hands in May for the first time in more than 40 years. The National Foundation for Affordable Housing Solutions acquired this fully affordable community for $26 million from Mid-City Financial. The transaction was subject to a $27 million CMBS loan provided by Fannie Mae and arranged by Greystone Servicing Corp.
Completed in 1971, Ontario comprises 48 two-bedroom and 38 three-bedroom units, ranging from 780 to 1,120 square feet. Common-area amenities include laundry facilities, a playground and 72 parking spaces
9. Laurel Heights
A private buyer acquired Laurel Heights from LivCor for $27.3 million. The deal closed in September and was subject to a 7-year, $21.3 million Freddie Mac loan, also arranged by Greystone. Located in Riverside, the property consists of 49 studios, 51 one-bedroom and 76 two-bedroom units, averaging 667 square feet. Residents have access to amenities such as a fitness center, basketball court, playground, swimming pool, clubhouse and 176 parking spaces. According to Yardi Matrix, LivCor acquired the asset in 2015 for $15.8 million. As of August, Laurel Heights was 94.3 percent occupied, and monthly rents there were at an average of $1,228.
8. The Palms on University
The 152-unit student housing community traded for $35.3 million. Scion Group acquired the property from Pierce Education Properties and drew an undisclosed amount from a $707 million line of credit held by Fannie Mae. The Palms on University features two- and four-bedroom floorplans, ranging from 840 to 1,437 square feet.
The community, completed in 2006, is located at 1400 University Ave., less than a mile from University of California, Riverside. Nearby points of interest also include several restaurants and retail, while downtown is just under 3 miles from Palms on University.
The 174-unit Dakota was completed in 2009. The property first traded this July for $42 million. MJW Property Group acquired the asset from Fairfield Residential. PNC Bank facilitated a $20 million loan for the acquisition, provided by Fannie Mae.
Dakota comprises 98 one-bedroom and 76 two-bedroom units averaging 944 square feet in size. The community is located at 34875 Pourroy Road in Winchester, in a predominantly residential neighborhood. Residents have immediate access to Winchester Road, several parks and shopping destinations. Dakota is currently 96.6 percent occupied and monthly rents average $1,665.
Fairfield Residential acquired the 296-unit Berkdale from Sterling American Property, for $44 million, in January. The transaction was part of a $180.5 million portfolio transaction which included Hensley at Corona Pointe, the first entry on this list. Berkdale also became subject to a $30.2 million CMBS loan, provided by M&T Bank and due 2025.
The 24-building community is situated at 1234 W. Blaine St., less than 3 miles from downtown Riverside. Unit mix consists of 80 studios, 96 one-bedroom and 120 two-bedroom units, ranging from 400 to 729 square feet. Common-area amenities include a fitness center, clubhouse, two swimming pools, spas and 330 parking spaces. Recently, Fairfield Residential also sold a 224-unit community in Los Angeles in a deal brokered by IPA.
5. Broadstone Serrano
Broadstone Serrano changed hands in June for $44.5 million. Crystal Asset Management bought the community from Strata Equity with the help of a $35.5 million loan provided by CIT Bank.
The 254-unit community is in northern San Bernardino, near California State University. Broadstone Serrano comprises 113 one-bedroom and 141 two-bedroom units, averaging 864 square feet. Its 25 buildings are spread across 14 acres and feature private balconies and patios, outside storage and a semi-private entry. Common-area amenities include a fitness center, clubhouse, tennis court, a business center and 360 parking spaces.
4. Foothill Ridge
Virtú Investments acquired the 232-unit community for $48.3 million, or $207,974 per unit. StarPoint Properties sold the asset, in a transaction which was subject to an undisclosed sum drawn from a $67.2 million line of credit held by Fannie Mae.
Foothill Ridge, completed in 1973, consists of 152 one-bedroom and 80 two-bedroom units, ranging from 566 to 973 square feet. Common-area amenities at Foothill Ridge include a swimming pool, spa, volleyball court, fitness center and 464 parking spaces. The community is situated in central Upland, at 1334 W. Foothill Blvd. Residents have immediate access to several large retail stores adjacent to the property, as well as dining destinations and large employers such as The Claremont Colleges.
3. Nova Pointe
The Korda Group sold Nova Pointe for $60 million to a private investor, who also recently acquired Laurel Heights, the ninth property on the list. The company initially acquired the 600-unit community in 2013 for $40.7 million. In the latest transaction, the asset became subject to a $48 million CMBS loan, provided by U.S. Bank and originated by Greystone Servicing Corp. The community is partially affordable, with 274 income-restricted units.
Nova Pointe, constructed in 1986, features a floorplan mix of studios, one- and two-bedroom units, ranging between 489 and 840 square feet. The property’s 55 buildings sit on 25.5 acres at 800 E. Washington St. in Colton. There are several large retail stores, restaurants and entertainment destinations within walking distance of the community. Nova Pointe is also less than a mile away from Interstate 215.
2. The BelAire Apartment Homes
In January, FPA Multifamily acquired The BelAire Apartment homes in Rancho Cucamonga, for $61.9 million, from NNC Apartment Ventures. The transaction was subject to a 12-year $46.4 million loan provided by Freddie Mac and arranged by Berkadia. The 1986-built property changed hands for the first time in 10 years.
The BelAire Apartment Homes is situated in western Rancho Cucamonga, at 8255 Vineyard Ave. The community comprises 120 one-bedroom and 142 two-bedroom units, ranging from 708 to 987 square feet. Common-area amenities include a business center, tennis court, two swimming pools, spa, laundry facilities and 362 parking spaces. The surrounding area features upscale restaurants, shopping destinations, as well as several country clubs and parks.
1. Hensley at Corona Pointe
Fairfield Residential purchased Hensley at Corona Pointe for $136.5 million from Sterling American Property. This transaction was also subject to a Freddie Mac loan, a $100 million financing package originated by Capital One. Sterling American Property acquired the asset in 2007 for $114.5 million.
Hensley at Corona Pointe is located at 1171 E. Baywood Drive, in Corona. It comprises 232 one-bedroom and 396 two-bedroom units, ranging from 622 to 900 square feet. The 1988-built community features common-area amenities such as a fitness center, clubhouse, three swimming pools, six spas, a business center and 900 parking spaces. As of August, the property is 95 percent occupied and monthly rents average $1,621.