Los Angeles – CBRE announced the sale of The Vue Apartment Homes, a 197-unit multifamily community in San Bernardino, Calif., to Dalan Management, a New York-based real estate investment and management firm, for $37.4 million.
Stew Weston, Dean Zander and John Montakab of CBRE represented the seller, FPA Multifamily, an Irvine, Calif.-based real estate investment firm.
Located at 1660 W. Kendall Drive, The Vue Apartment Homes was originally built in 1988 and features five different floor plans that range from 800 to 1030 square-feet. Amenities include a pool, sundeck, business & student center, volleyball court, playground, fitness center, package receiving system and intercom-controlled entrance.
The property is within one mile of the I-215, a major Southern California freeway that connects San Bernardino to Riverside, Orange and Los Angeles Counties. The apartment community is walking distance to California State University, San Bernardino which features a large selection of student-tailored retail and entertainment destinations. Within a 10-mile radius is 104 million square-feet of industrial and commercial space and 10 million square-feet currently under construction.
“The strong job base and expansion of commercial logistic operations continues to drive apartment rents in San Bernardino and adjacent communities,” said Weston. “We expect this growth to continue with projects such as the nearby Rialto Airport development which will add more than 4.5 million square-feet of industrial and commercial space, bringing in an estimated 11,000 new jobs.”
Zander added, “The increasing demand for housing and manufacturing in this area makes multifamily a wise investment. The Inland Empire has really benefitted from the influx of people and jobs driven by the industrial and e-commerce growth in the area. It is generally considered an affordable alternative to many other Southern California regions.”
Daniel Wrublin, Principal of Dalan Management, added, “The strong job growth and demographic trends in the Inland Empire attracted us to this opportunity. We are pleased to be able to acquire a quality property of scale in the heart of San Bernardino and look forward to continued growth in this submarket and throughout Southern California.”
The Inland Empire multifamily market remained healthy in Q1 of 2019, with a favorable vacancy rate and very strong rent growth. Construction activity continued to rise with completions totaling 1,555 units for the year ending in Q1 2019 (up by more than triple from the preceding four quarters). Nevertheless, demand in the Inland Empire exceeded new supply with 1,445 units absorbed over the same time period.