Mark Gleiberman’s MG Properties Group has acquired District at Grand Terrace, a 352-unit multi-family property in Colton, CA from Mike Farley’s Tower 16 Capital Partners for $88 million. The apartment complex is located at 1316 South Meadow Lane, within close proximity to downtown Riverside and Loma Linda/Redlands.
- Acquisition Financing: The buyer secured over $48 million in financing from CIT Bank and National Association to close the deal.
- Property Details: The property’s apartments average 872 SF each. Interestingly, the average apartment rent in the flourishing Inland Empire rose from $1,568 in 2019 to $1,717 in 2020 for a 9.5 percent jump, in contrast to Los Angeles where rents dropped. The suburban region boasts a booming industrial sector, with 14 Amazon fulfillment centers within 20 miles of the property, CO noted.
- Hot Location: The seller, Tower 16, noted that it’s still bullish on the area and is looking for further acquisition opportunities. “We believe the Inland Empire will continue to be a strong market for workforce housing due to the growing job base and high barriers to entry for new construction,” Tower 16’s Tyler Pruett noted.
- Flashback: Tower 16 paid roughly $63 million for the building in May 2019, and subsequently implemented a $2.6 million capital improvement program.
- Brokers: Chris Zorbas, Alex Garcia, Tyler Martin, and Chris Copenhaver of Institutional Property Advisors (IPA), a division of Marcus & Millichap brokered the sale. “Multifamily asset performance in the Inland Empire has been very strong, despite the pandemic. Year-over-year vacancy is just 1.8 percent,” Garcia noted. [CO+GlobeSt]