Sagard Acquires in Inland Empire
The value-add play is the first acquisition by a new fund set up by the company.
Sagard Real Estate, formerly EverWest Real Estate Investors, has acquired Vista Imperio, a 158-unit garden-style multifamily property in Riverside, Calif. The acquisition is the first investment by Sagard Real Estate’s latest open-end fund, which targets seaport industrial, workforce housing and other niche property sectors.
Built in 2004 on an eight-acre site in the Sycamore Canyon neighborhood of Riverside, Vista Imperio offers a mix of one- and two-bedroom units. Residences feature private patios, in-unit laundry, stainless steel appliances and private garages, with half of the units offering direct in-unit garage access.
Common-area amenities include a pool with a sundeck, cabanas, a fitness center and a clubhouse. With about one-third of the units unrenovated, the property presents a value-add opportunity, according to Sagard Real Estate.
California multifamily opportunities
Some markets in California offer strong multifamily investment opportunities, especially those with steady and growing demand for rental housing serving a resident base earning 70 to 120 percent of area median income, John Maurer, senior portfolio manager and head of equity for Sagard Real Estate, told Multi-Housing News.
“Moderate-income housing is systemically undersupplied and this type of tenancy remains resilient across economic cycles, with lower turnover and volatility compared to Class A product,” Maurer said.
Green Street’s recent research commentary supports the company’s view that rent growth in the Inland Empire has been among the strongest in the nation, considering spillover demand from Orange County and Los Angeles, he added.
“We prioritize infill submarkets, like Riverside, with high barriers to entry and an older stock of apartments, where the spread between Class A and Class B rents is 20 percent to 30 percent,” Maurer noted.
That means an opportunity to acquire dated but functional assets, generally garden-style properties less than 30 years old, and execute a value creation strategy, including operational and management improvements, amenity upgrades and unit renovations, Maurer noted.
Overall, the multifamily market in the Inland Empire showed a comeback in the second quarter of 2024, Yardi Matrix data shows. Rent growth was up 0.4 percent on a three-month basis through June, to $2140. The occupancy rate in stabilized properties showed a 50-basis-point decline year-over-year through June, yet still remained above the national figure at 95 percent.
