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Inland Empire Townhome Community Trades for $150 Million in So Cal’s Largest Multifamily Transaction of 2023

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In the largest multifamily transaction in Southern California to close this year, real estate investment firm Archway Equities (“Archway”) has acquired from 4914 Olive Street Properties LLC, The Paseos at Montclair North, a 385-unit multifamily community in the Inland Empire community of Montclair, CA for $150 million.

For Archway, which has more than $1 billion in commercial real estate assets under management, including 5,000 apartment units across the Sunbelt, The Paseos represents the firm’s first multifamily investment in California.

“Somewhere along the way, cap rates between the Sunbelt and coastal markets inverted and select pockets of Southern California should now provide more attractive risk-adjusted returns in the current environment,” said Archway President Sean Moghavem. “We are still very bullish long term on multifamily in the Sunbelt because of its favorable business climate, low cost of living and continued job and population growth. Having said that, we continue to see aggressive pricing that’s not factoring in short-term headwinds such as supply, rising property taxes and insurance costs We’ll always look to grow our Sunbelt portfolio but are also actively seeking opportunities in the Inland Empire, Orange County and San Diego.

“With a lot of institutional capital sitting on the sidelines, there are very few firms that would be able to close on a transaction of this size,” added Archway Managing Director Sankeerth Pulusani. “Consequently, we believe that we were able to acquire the best asset in this submarket,” he said.

Paseos at Montclair North is located at 4914 Olive Street at the Inland Empire’s eastern gateway to Los Angeles’s San Gabriel Valley. The Paseos’ location offers immediate proximity to the rapidly growing Inland Empire economy and prominent Los Angeles employment hubs, according to JLL who marketed the property for sale on behalf of the seller.

Nearby to Interstates 10 and 210, residents are a 60-minute commute to more than 6.5 million jobs. In addition, the property is within walking distance of the Montclair Transitcenter, an intermodal transit center providing bus and train service throughout the region. It also will be the future home of the eastern terminus to the Los Angeles Metro Rail “L” Line serving downtown Los Angeles when completed in 2028. The property also neighbors Claremont McKenna College, ranked as one of the top 10 liberal arts universities in the country, according to U.S. News & World Report.

Encompassing nearly two full city blocks, the garden style community features a unit-mix of studio, one-, two- and three-bedroom Santa Barbara inspired townhomes built around a central linear park with concert amphitheater. The property boasts a best-in-class amenity set including two resort-style pool areas with spas and cabanas, fitness facility with children’s entertainment suite, yoga room, conference center, and entertainment lounge. The property was 97% leased at closing.

While well maintained, 100 percent of the units have not been significantly updated since the property was developed in 2014. Archway plans to add designer touches to the unit interiors, create a co-working space and reimagine the amenity areas in what Pulusani describes as a “modest renovation.”

According to CoStar data, The Paseos is the largest of 546 multifamily transactions to close this year in Southern California, a market area that includes Los Angeles, Orange, Riverside, Ventura and San Bernardino Counties. It is only the second transaction to trade at more than $100 million.

Archway assumed the accretive in place Agency loan with five years remaining on the term.

The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.

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Stater Bros. Charities and Reyes Coca-Cola Bottling Give Back to Military Families

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Stater Bros. Charities, the philanthropic arm of Stater Bros. Markets, partnered with Reyes Coca-Cola Bottling again this year for their Give Back program during National Military Appreciation Month. The program ran for the entire month of May, during which Reyes Coca-Cola Bottling committed to donating $0.25 per eligible product purchased to the Bob Hope USO. Reyes Coca-Cola Bottling donated $15,000, and Stater Bros. Charities matched their donation for a total contribution of $30,000.

A check presentation occurred during a K-EARTH 101 radiothon benefiting the Bob Hope USO. The radiothon took place at the Bob Hope USO at LAX (Los Angeles International Airport) on June 29, 2023, where Stater Bros. Charities and Reyes Coca-Cola Bottling presented Bob Hope USO with a $30,000 check.

Bob Hope USO’s mission is to strengthen America’s military service members by keeping them connected to family, home and country, throughout their service to the nation. The Give Back program is a unique opportunity to show gratitude and support to the brave men and women who risk their lives for our freedoms and to care for their families while they are away from home on deployment.

“Stater Bros. Markets has a long history of supporting veterans, service members, and their families,” said Danielle Oehlman, Director, Stater Bros. Charities. “We are so pleased to partner with our friends at Reyes Coca-Cola Bottling and the USO to give back to those who have given so much for us.”

Lorin Stewart, President, USO West Region, said, “We are deeply grateful to Stater Bros. Charities and Reyes Coca-Cola Bottling for being sustaining partners of the USO. The Give Back program embodies the essence of the USO mission by enabling the community at large to come together to support and give thanks to our armed forces and their brave military families in an impactful way.”

Funds will support the Bob Hope USO and USO San Diego Center operations, including programs and services that strengthen the social, mental, physical, and emotional well-being of local military service members, their families, and their communities.

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BDK Logistics Intelligence Fully Leases 114,190 SF Industrial Facility in Corona, CA

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Cushman & Wakefield represents landlord in lease in SoCal’s Inland Empire

Cushman & Wakefield announced that BDK Logistics Intelligence, Inc. has signed a lease for an entire 114,190-square-foot industrial facility at 1161 Olympic Drive in Corona, California. Situated in Southern California’s renowned Inland Empire, the building is owned by Monterey Rancho Mirage, LLC, which was represented by Brett Lockwood and Rick Ellison of Cushman & Wakefield in the transaction.

“We are pleased to welcome BDK to the property as a quality industrial tenant that is expanding its presence in the market, which it also currently occupies multiple warehouse facilities,” said Director Brett Lockwood. “Our client was instrumental in helping this deal transact as there were many variables that needed to be navigated which led to this lease coming together quickly and successfully.”

1161 Olympic Drive is a quality freestanding building situated on ±4.8 acres and features 20 dock high loading doors. The property is conveniently located off Interstate 15 near the confluence of SR 91 and is proximate to the extensive freeway network traversing the entire Greater Los Angeles region and into other major markets in and out of state.

According to Cushman & Wakefield’s latest Q2-2023 quarterly report, the Inland Empire industrial market posted an overall vacancy of 3.4% and has recorded more than 2.7 million square feet of positive net absorption through the first half of 2023.

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Hernandez resigns as County CEO; Snoke will continue filling in pending Board action

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Leonard X. Hernandez resigned from the post of County Chief Executive Officer effective today. County Chief Operating Officer Luther Snoke has been filling in for Hernandez while Hernandez has been on leave and will continue to do so. The Board of Supervisors will act to appoint an interim or permanent CEO shortly.

“The Board of Supervisors appreciates the service Leonard provided to the public and the County organization, especially as we navigated our way through the pandemic and other very difficult challenges,” said Board of Supervisors Chair Dawn Rowe.

Hernandez provided the following statement:

“It has been an extreme privilege to serve as the Chief Executive Officer of San Bernardino County. I am thankful to the Board of Supervisors for their leadership and the hard-working men and women who do amazing work every day. Due to an urgent family health issue that requires my immediate and undivided attention, I have informed the Board of my resignation. Under the strong leadership of the Board of Supervisors and the County’s executive team, the County will continue doing great things for the residents of San Bernardino County.”

“The Board of Supervisors is committed to a seamless transition in staff leadership with no interruption in County services or impact on County residents or employees,” Rowe said. “Luther has performed well filling in for Leonard and I am confident in his ability to continue serving in this role until the Board takes action.”

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