LuxView Properties Plans Redland's First Multifamily Build in 30 Years

LuxView Properties is developing the first apartment property in Redlands, California, in 30 years. The developer has secured $93 million in preferred equity and construction financing for the development.

Known as Venue at Orange, the apartment development will have 328 units in a mix of one-, two- and three-bedroom floorplans averaging 944 square feet. The property will also feature high-end amenities, including conference rooms for at-home work, a large community park with trails and jogging paths, community courtyard with a planned community center, demonstration kitchen, enclosed playground, community pool and gym and outdoor exercise areas. It is scheduled for delivery in late 2022.

The development will be a landmark for the market. Built on nearly 22 acres, the property is not only the first apartment development in decades, but it is on one of the largest development sites in the area. There are limited development opportunities in Redlands, and this is the only site entitled for multifamily development.

LuxView Properties secured a five-year, $66.8 million, floating-rate loan through Principal Real Estate Investors and $26.2 million in preferred equity from a public REIT. JLL Senior Managing Director Aldon Cole and Associate Bharat Madan secured the funds on behalf of the borrower.

The Inland Empire is one of the fastest growing apartment markets in the country. According to research from Marcus & Millichap, the Riverside-San Bernardino apartment market has the lowest vacancy rate in the US. 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.

The strong vacancy rate supports double digit rent growth. 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.

The market has grown consistently this year. A Yardi report from March ranked the Inland Empire and Sacramento as the strongest apartment markets in the country with rents up 7.6% and 6.4%, respectively. A new multifamily report from Yardi Matrix shows the markets are also among the top three for occupancy growth year-over-year, with occupancy in the Inland Empire ticking up 2.2% in January and Sacramento showing a 1.2% increase. They also showed strong rent growth thanks to limited new supply coming online.