203-Unit Vintage Portfolio Sells for $41 Million Following 50-Year Hold
Pictured above: Mayfield Park Apartments, San Bernardino, CA
Two vintage Southern California multifamily properties, developed more than 50 years ago, were sold to a local private investor for a total of $41.1 million. The family-owned, third-generation portfolio was developed in the late 1960s and 1970s, comprising the 120-unit Springbrook Park Apartments and the 83-unit Mayfield Park Apartments.
CBRE’s Eric Chen told ApartmentBuildings.com that the new owner plans to undertake interior and exterior renovations to add value to the properties. “We extensively marketed these properties and ended up fielding more than ten tours and four offers for each one,” said Chen, who, with CBRE colleagues Blake Torgerson and Kevin Sin, represented the seller in the transaction.
Meanwhile, CBRE’s Debt and Structured Team refinanced another of the buyer’s apartment properties. The process allowed the buyer to leverage capital and complete the buy with only $6.3 million in out-of-pocket expenses.
Chen said the local buyer was selected because of the competitive pricing offered. Additionally, “the financial strength of the buyer and their previous track record working with our team is excellent,” he said.
Springbrook Park Apartments, built in 1971, is situated on 6.79 acres at 1060-1146 N. Orange St. in Riverside, CA. On-site amenities include a fitness center, bicycle storage, laundry facilities, a multi-use room and a playground. The apartment complex offers one-, two-, and three-bedroom units, ranging in size from 880 to 1,100 square feet. The occupancy at the time of the sale was 97%
Mayfield Park Apartments, is on 3.72 acres at 345 W. 41st St. in San Bernardino, CA. Community amenities include a fenced lot and pool. The 96% occupied property offers one- and two-bedroom units ranging from 725 to 825 square feet.
Chen added that the portfolio sale represented a unique true value-add opportunity to the buyer. “There are very few properties of this size and vintage that sold in the Inland Empire within the past couple of years,” Chen said. “The majority of transactions during that time frame involved smaller unit sizes or newer vintage assets.”
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Brokers
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Remax Professionals
Re/Max Real Estate Professionals | New York
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Jared Ennis
Central CA Commercial | California
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Rick Recckio
Recckio Real Estate & Development
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Eamonn McConnell
Avison Young - CA - ON - Greater Toronto
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Essex Property Trust, Inc.
California
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Josh A
California
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Bob Tuteur
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Andrew Schildcrout