COMMERCIAL REAL ESTATE TRANSACTION ALERT
CBRE arranged the sale of Reche Ridge and 1333 Canyon, two multifamily properties totaling 214 units in Colton, Calif., to Tower 16 Capital Partners in an off-market transaction for $41 million.
Dean Zander and Stew Weston of CBRE represented the seller, Logan Capital Advisors. Scott Peterson, Bill Chiles and Morgon Fraser of CBRE Capital Markets’ Debt & Structured Finance secured $36.06 million in acquisition and renovation financing on behalf of Tower 16 Capital Partners.
“Tower16 is a big believer in the Colton market, having recently repositioned and sold another large asset in the immediate area,” said CBRE’s Zander. “They plan to implement a similar value-add strategy at Reche Ridge and 1333 Canyon.”
Reche Ridge is a 110-unit, three-story Cape Cod-style apartment community located at 2270 Cahuilla Street. 1333 Canyon is a 104-unit, two-story Tuscan-style apartment community located across the street at 1333 Reche Canyon Road. The garden-style properties, built in 1985 and 1986, respectively, are situated within the Reche Canyon hillside and feature one- and two-bedroom floorplans. Logan Capital Advisors has invested nearly $1.5 million into the properties since 2015, including renovations and upgrades to a majority of the units, the fitness center, leasing office, pool areas, signage, driveways and landscaping.
“The buyer will continue to add value to the property through additional improvements to unit interiors, common areas and address deferred maintenance,” said CBRE’s Peterson.
The communities are situated within the Inland Empire and benefit from proximity to Loma Linda and the Redlands, two of the area’s major employment corridors. The properties offer access to the I-215, 1-10 and 210 freeways and are in proximity to grocery stores, shopping centers, higher education institutions and hospitals, including Loma Linda University Medical Center.
The population in the Inland Empire increased by more than 4.6 million people over the last 10 years, up 9.7 percent, according to CBRE Research. It is the 13th-largest metropolitan area in the nation. Despite the COVID-19 pandemic, the Inland Empire ranks 30th for employment growth, outperforming Los Angeles, San Diego and Orange County.
“As employment growth continues throughout the Inland Empire, coupled with the lack of housing available, we expect rents at the subject property to increase substantially over the next two years,” said CBRE’s Weston.
Tower 16 Capital Partners is a commercial real estate investment and management company focused on acquiring and managing value-add and opportunistic investments in the Western United States.