RIVERSIDE, CA-As GlobeSt.com previously reported, Hendricks-Berkadia's Dean Zander, Vince Norris and Spencer Scott have successfully completed the $32-million sale of 208 units in Riverside, CA. The buyer of View Pointe Apartments located in the residential submarket of Canyon Crest in the city of Riverside was San Diego-based Davlyn Investments.
According to Davlyn Investments, the property will be extensively renovated and rebranded, the Hills at Quail Run. Loan assumption services were provided by M&T Bank.
According to Aaron Pacillio, Davlyn's director of acquisitions, “This property acts as a bookend to our 2012 purchase of Estancia, another 208-unit, class-A, project in the nearby Mission Grove area of Riverside, CA. In addition to these two deals, Davlyn owns another 830 units located nearby, so we have a great deal of operational insight into the Inland Empire apartment market.”
Jon D. Williams, CEO of the firm, elaborated, noting that “Like Estancia, this deal allows us to invest new capital into a class-A assets in regions where many major institutions don't currently compete on a wide scale. Therefore, we're able to achieve excellent cash-on-cash returns from core-quality assets located in regions just beginning to recover from the recent recession. Our theory has been that the institutions will come back at some point in the future because, with over 3 million people, the Inland Empire is just too large an economic environment to ignore. These dynamics should allow us to provide strong, stable returns to our investors over the long term.”
According to a recent Q3 apartment report for the Riverside-San Bernardino area from Marcus & Millichap, The apartment investment market fervor more closely resembles the mood in the middle of the last decade, “a trend that will persist while interest rates are low.” Both buyers and sellers are active in the market, though their disparate outlooks of the apartment market are serving as a motivator, says the firm.
“Sellers that purchased while prices were high and can finally divest without having to bring cash to the closing table are happy to relinquish their assets to an eager buyer after maintaining the property for several years. Other owners who purchased properties during the downturn are now profit-taking or refinancing to add to their portfolios. Buyers, meanwhile, are looking to realize returns that are higher than other investment vehicles.”
Due to the low cap rate levels, most of these investors, Marcus & Millichap says in the report, are predicting appreciation in both rents and on the real estate.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
