Downtown Riverside apartment complex fetches $80M
Advanced Real Estate Services continues to bulk up in Inland Empire
Advanced Real Estate Services has purchased a 212-unit apartment complex in downtown Riverside for just over $80 million.
The firm bought the Mission Lofts from Newport Beach-based Realm Group, according to the Registry. The deal equates to $377,358 per unit.
Realm Group developed the property and completed it in 2019.
Fannie Mae provided a 10-year full term interest-only loan to Advanced Real Estate Services for the acquisition, said Northmarq’s Mike Elmore, who along with four colleagues arranged the financing.
Mission Lofts is a mix of studio to two-bedroom apartments, according to a property website. The smallest studio units total 459 square feet and the largest two bedroom unit — which includes a loft space — totals 1,188 square feet.
Common amenities include a pool and spa, gym, dog park, barbeque stations, and a clubroom with a pool table and shuffleboard. There is also bike storage and electric vehicle charging stations.
The deal is the last acquisition through a fund Advanced Real Estate Services raised last year. The firm acquired five other properties, including the James in Riverside, through the fund. Those properties and Mission Lofts total 1,027 units.
The investor also scooped up a 346-unit complex in Chino Hills last October via a 1031 exchange. ARES paid $130 million for the newly built complex, called The Crossing. The seller was Bridge Investment.
All of those deals have come in Riverside or San Bernardino, which together are known as the Inland Empire–a part of Southern California that recorded the highest percentage rent growth in the country in the first quarter of this year, in part because of increased demand for suburban-style housing amid the pandemic.
The University of Southern California forecasts average total rent in the Inland Empire to increase $241 to $2,068 by the end of the third quarter of 2023, which would still make it the most relatively affordable market in the pricey Southern California region.
[The Registry] — Dennis Lynch