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8/01/17
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KEBA Capital LLC paid $5.7 mil for a four -property multifamily portfolio located in Yucaipa and Calimesa, CA. The properties total 43 units ($132.5k/unit) with 32.5k sf of space.
The two properties in Yucaipa are located at 12350-12370 5th St and 35455 Yucaipa Blvd. The two sites in Calimesa are situated at 221-233 W County Line Rd, and 419 W County Line Rd.
The four properties, featuring pitched composition roofs, are situated within two miles of each. They contain single-story and two-story apartments, as well as individually detached units.
Eric Chen with CBRE represented the buyer and the seller, Magnus Investment Partners LLC, in the transaction. Ryan Wilkinson at CBRE’s Debt & Structure Finance assisted the buyer in obtaining financing with Freddie Mac’s SBL programs.
According to Chen, the sellers had been upgrading the buildings’ interiors and exteriors to maximize the portfolio’s value.
The number of new apartments expected to come online in the Greater Los Angeles area this year is expected to top the previous record reached in 2016, driven by continued strong demand for rental space, according to the latest research report by CBRE. Deliveries in 2017 are projected to total 7,830, up from 7,755 in 2016, which had been the highest annual volume in the past 20 years.
Continued strong demand helped buoy effective rates to $1,630 during the first quarter from $1,298 in Q1 2012. Rental rate growth was driven not just by changing home ownership preferences but also by the development of high-end multifamily properties in the region.
“Areas such as the Inland Empire have seen continuous job growth since the end of the Great Recession,” said Chen. “Our research shows that between 2010 to 2016, the Riverside-San Bernardino-Ontario metro area gained more than 250,500 new residents. That means demand for apartments is strong in these growth markets.”
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