Investment firm ARES pays $130M for Chino Hills apartment complex

Deal for 346-unit property was a 1031 exchange

Los Angeles /
Oct.October 20, 2020 10:00 AM
Richard Julian and Robert Morse, with the property
Richard Julian and Robert Morse, with the property

Investment firm Advanced Real Estate Services acquired a recently-built 346-unit apartment complex in Chino Hills, one of the largest deals that closed in the area during the pandemic.

Also known as ARES, the Irvine-based firm paid $130 million for The Crossings, located at 15101 Fairfield Ranch Road, according to Commercial Observer. The seller, Bridge Investment, completed the development last year.

The sale was a 1031 exchange, which was made with funds from the sale of a “large mobile home park in Huntington Beach,” ARES’ president Richard Julian said, according to the Observer.

Fannie Mae provided a $76.8 million acquisition loan that carries a 2.44 percent interest rate and 10 years of interest-only payments.

A 1031 exchange allows the investor to swap two properties and defer the federal capital gains tax incurred on the first sale.

Democratic presidential nominee Joe Biden wants to eliminate the tax loophole that enables such exchanges for investors with annual incomes greater than $400,000.

Amenities at the Crossings property — which spans 32 acres — include a gym, soccer field, playground, pool, and a business center. There also are electric vehicle charging stations.

ARES plans to acquire two more multifamily properties by the end of the year with 1031 exchange funds, according to the report.

ARES owns around 9,000 apartment units in Southern California. Julian said the firm was “bullish” on the western Inland Empire multifamily market, the Observer reported. [CO]Dennis Lynch


Related Articles

arrow_forward_ios
(iStock)
Rent prices will keep rising in suburbs: USC report
Rent prices will keep rising in suburbs: USC report
Average Q1 rent in the region increased 8.5 percent year-over-year. (Getty)
Inland Empire rent hikes highest in nation
Inland Empire rent hikes highest in nation
(Getty, iStock)
SoCal industrial boom may prompt tighter air quality regulations
SoCal industrial boom may prompt tighter air quality regulations
(Redwood Urban)
Hollywood tenants’ lawsuit blitz takes turn for the surreal
Hollywood tenants’ lawsuit blitz takes turn for the surreal
Prologis CEO Hamid Moghadam and 1920 West Baseline Road (Google Maps)
Prologis signs digital services firm to sprawling warehouse lease in Inland Empire
Prologis signs digital services firm to sprawling warehouse lease in Inland Empire
Rexford’s Howard Schwimmer and Michael S. Frankel with 2034-2040 East 27th Street (Google Maps)
Rexford fills holiday basket with another warehouse portfolio
Rexford fills holiday basket with another warehouse portfolio
Howard Schwimmer and Michael S. Frankel (Rexford, iStock)
Rexford adds 600K sf to industrial portfolio in Inland Empire
Rexford adds 600K sf to industrial portfolio in Inland Empire
1724 Highland Avenue (Redwood Urban)1724 Highland Avenue (Redwood Urban)
Lawsuits allege Airbnb guests ran rampant at Hollywood apartment complex
Lawsuits allege Airbnb guests ran rampant at Hollywood apartment complex
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...