ONTARIO, CA-Jackson Square Properties of San Francisco has acquired the 240-unit Montierra Apartments at 1701 E. D St. from Coastal Ontario LLC of Newport Beach for $35 million in a deal brokered by Lee & Associates. The transaction "further demonstrates that investor confidence has returned to the Inland Empire," according to Jim Fisher, Mike Smith and Craig Stevens, principals at Lee & Associates who represented both the buyer and the seller.

Jackson Square acquired the property in a 1031 exchange out of another multifamily property. Occupancy of the complex was in the mid-90% range and the sale closed at a cap rate in the low 6% range.

Built in the mid-1980s, Montierra Apartments is near Ontario International Airport and the Ontario Convention Center. The complex consists of 15 two-story buildings with 75 one-bedroom, 60 two-bedroom/two-bath, 60 two-bedroom townhouse/loft/two-bath and 45 three-bedroom/two bath townhouse units. The units range from 730 square feet for a one-bedroom to 1,166 square feet for a three-bedroom townhouse. Rents for 2010 ranged from $1,049 to $1,629.

Commenting on the deal, Fisher said that interest in the Inland Empire has returned faster than many expected. “Many investors anticipated the Inland Empire would be a slower market to recover because this market was especially impacted by the recession," he said. "However, a number of transactions have taken place here in the last few months with others in the pipeline to follow.” He added that apartments in the Inland Empire and throughout Southern California "are in scarce supply and will continue to be highly sought-after as long as attractive financing is available.”