Ocean West JV Buys 442 Units in the Inland Empire
The firm partnered with Tiger Alternative Investors, NH Investment & Securities Co. and Camden Pacific Partners to buy The Monterey, a new construction apartment building.
A partnership between Ocean West Capital Partners, Tiger Alternative Investors, NH Investment & Securities Co. and Camden Pacific Partners has acquired The Monterey, a 442-unit new construction apartment building in Corona, CA. The sales price was not disclosed.
The Monterey was completed this year. The property has a mix of one-, two- and three-bedroom units and an expansive list of class-A amenities, including two resort-style swimming pools, clubhouses with roof decks, a fitness center with, yoga and spin studios, co-working space with conference rooms and soundproof privacy pods, an outdoor movie theater and a community garden and citrus orchard.
The Inland Empire became one of the top apartment markets in the country in the last 18 months. Like many of the growth markets in the country, population growth is fueling the housing demand in the market—housing supply is limited. In fact, the Riverside-San Bernardino apartment market has the lowest vacancy rate in the US, according to research from Marcus & Millichap. From July 2020 to June 2021, the vacancy rate fell 200 basis points, falling below 2%. Plus, the firm forecasts that the vacancy rate will fall another 30 basis points this year.
No surprise, the demand has also supported strong rent growth. Marcus & Millichap data shows the Inland Empire region has seen double-digit rent growth this year. Already, the market has the second fastest rent gain nationally, and the report anticipates rents will increase 11.2 % by the end of the year.
These fundamentals are attracting investors. MG Properties Group expanded its apartment portfolio in the Inland Empire with the acquisition of Victoria Arbors Apartment Homes for $137.6 million in July. The investor purchased the 319-unit garden-style apartment property from Sares Regis Group’s Sares Regis Multifamily Funds. In August, Tower 16 Capital Partners acquired a two-property, 504-unit apartment portfolio in the Inland Empire for $107.2 million. The two properties in the transaction are Sienna Pointe Apartments, a 384-unit property built in 1985, and Heacock Park Apartments, a 120-unit property built in 1971. Both were acquired from a private seller in an off-market transaction.