Positive Investments of Arcadia, CA, has purchased two multifamily properties in Victorville, California, from Sagebrush Companies of Denver for a total of $33 million. The Colony at 14450 El Evado Road contains 200 units and is 94 percent occupied; Golden Sands at 15930 Nisquali Road contains 120 units and is 97 percent occupied.
The Colony features a fitness center, basketball court, designated pet stations, and two swimming pools. Golden Sands features two swimming pools and spas and BBQ areas. Both properties are in proximity to a variety of retailers, including Nèktar Juice Bar and Costco. Both are well maintained, and the portfolio features a unit mix comprising primarily two- and three-bedroom apartments.
John Montakab and Stewart I. Weston of CBRE represented both the buyer and the seller in the transaction. Sagebrush had which purchased the portfolio in January 2017 and executed a successful value-add strategy.
“CBRE assisted Positive Investments in the purchase of two fantastic investments as part of a 1031-exchange,” Montakab says. “The company is extremely knowledgeable of operating properties in secondary markets and has successfully been able to improve operations at similar assets. In short, they were the perfect buyer for this portfolio.”
According to recent estimates from an analysis by the U.S. Census Bureau, demand for rental property in the Inland Empire is likely to stay strong. The area has one of the fastest-growing populations in the country, with Victorville showing 7.5 percent year-over-year rent growth between 2016 and 2017, and the market has maintained a 96 percent occupancy rate.
“This market has seen tremendous economic and population growth, which has resulted in ever-increasing demand for housing,” Weston says. “These two extremely well-maintained buildings cater to this demand and represent fantastic, stable, and income-producing investments.”