WEST COVINA, CA-Owners of one of the largest apartment complexes in one of the region's submarkets with high barriers to entry, the 312-unit Waterstone at Walnut Ridge, have placed the property on the market for an asking price of $65 million, according to the Harris Group at Marcus & Millichap. Listing agent Gregory Harris of the Harris Group describes the complex as a "prime located, value-add property" that occupies more than 15.4 acres in a West Covina location that is close to the upscale community of Walnut.

According to Harris, gross rental income has increased 6.2% over the last 12 months at the complex, which is in a submarket where comparable renovated properties are exceeding market rent projections. He notes the strong housing market in adjacent Walnut, where the median home price is $660,000 and the median household income exceeds $88,000.

The operations at Waterstone at Walnut Ridge "are coming off an exceptional fourth quarter," Harris tells GlobeSt.com. He says that gross potential rent and collected income continue to exceed expectations at the complex, which he describes as the type of investment that will appeal to buyers looking for upside potential.

Built in 1980, the Waterstone comprises 14 two-story buildings featuring nine different floor plans. The unit mix includes studio, one- and two-bedroom apartments that range from 600 sf to 1,000 sf, with the average more than 830 sf.

All of the units include private patios or balconies, and the complex features common area amenities that include two pools and Jacuzzis, a fitness center, a lighted tennis court and secured parking. The property is separately metered for gas and electricity.

Harris says that the property has remained popular with renters both for its amenities and for its location within close commuting time of Downtown Los Angeles and the Inland Empire, with three major shopping centers within 4.5 miles and a number of major universities nearby as well.