352-Unit California Multifamily Trades for $88M

352-Unit California Multifamily Trades for $88M

Article originally posted on Globe St. on April 16, 2021

COLTON, CA – Tower 16 Capital Partners has sold its 352-unit multifamily property in Colton, CA to MG Properties Group for $88 million.

The property, District at Grand Terrace, sold for a price that equates to $250,000 per unit.

Tower 16 Capital Partners originally purchased the community in 2019, prior to implementing a $2.6 million capital improvement program at the property.

The multifamily asset offers one-, two, and three-bedroom units, which average 872 square feet. The property additionally features four swimming pools, a fitness center, a pet park and playgrounds. The asset was constructed in 1980 and 1986.

Located near the San Bernardino Freeway and Interstate 215, the community is situated within ten miles from downtown San Bernardino, Lorna Linda University Medical Center, St. Bernardine Medical Center and Arrowhead Regional Medical Center.

Institutional Property Advisors, a division of Marcus & Millichap, represented the seller and procured the buyer for the transaction. The IPA team comprised executive managing director of investments, Alexander Garcia, Jr., executive managing director of investments, Christopher J. Zorbas and Marcus & Millichap’s VP of investments, Tyler J. Martin.

“Nicknamed ‘Hub City,’ Colton’s population increased from 52,500 to 55,000 between 2019 and 2020 and average annual household income increased from $54,903 to $62,974,” states Martin. “The Fontana-Rialto-Colton submarket demonstrated its economic strength during the turbulence caused by COVID-19 and the outlook for the next five years is extremely favorable.”

“Multifamily asset performance in the Inland Empire has been very strong, despite the pandemic,” states Garcia. “Year-over-year vacancy is just 1.8%.”

“The Inland Empire’s shutdown-resistant, medical- and logistics-heavy job market, limited new apartment construction, and lack of new supply support apartment owners,” says Zorbas.