PCCP, Alliance Acquire Riverside Apartments for $65 Million

PCCP and Alliance Residential Company plunked down more than $65 million for an apartment complex in the Inland Empire’s biggest city.

The two firms acquired The Hawthorne, a 184-unit multifamily property at 9170 Indiana Avenue in Riverside, for $65.3 million, Multi-Housing News reported. The Carlyle Group and Brandywine Homes were the sellers.

The Hawthorne opened in 2023 and consists of 16 two- and three-story buildings with one-, two- and three-bedroom units averaging 873 square feet. City National Bank provided a $34 million construction loan in 2020.

PCCP and Alliance Residential have been on a multifamily tear across the country over the past year. Earlier this year, the companies acquired Heights on Katy, a 387-unit property in Houston, and the 173-unit Luxor Bala Cynwyd in the Philadelphia area.

The Hawthorne sold for approximately $355,000 per unit. That’s more than 33 percent higher than the average price per unit in the Inland Empire last year, per Yardi Matrix data cited by Multi-Housing News. Even still, it represents a discount compared to other multifamily property sales in the I.E. like the 330-unit Venue at Orange complex in Redlands, which sold last summer for $148.4 million, or about $452,400 per unit.

The Inland Empire is showing itself to be a bright spot among the Greater Los Angeles multifamily market. Los Angeles, Ventura and Orange counties face undersupplied multifamily rental markets and rising vacancies in the next two years, but the I.E. is expected to see a 4.6 percent increase in rents in that same period, L.A. Business First reported, citing real estate experts at December’s Casden Multifamily Forecast and Conference.

The I.E., consisting of Riverside and San Bernardino counties, has seen approximately 3.6 percent annual rent growth over the past five years, with vacancy expected to shrink as demand increases, possibly from renters seeking cheaper rates outside of L.A. — Chris Malone Méndez