Kennedy Wilson Acquires 228 Units

The sales price was undisclosed, but the property was on the market for $19.3 million. The sale was brokered by Paul Runkle and Robin Ossenbeck of Hendricks & Partners, with debt financing provided by Merrill Lynch Capital, according to Joan Kramer, VP and regional manager of Merrill Lynch Capital. Kramer describes the property as an underperforming asset that presents potential for the "strong repositioning team" at Kennedy Wilson.

Built in 1978, the Crest is at 22491 DeBerry St. and was 95% occupied at the time of the sale. The complex consists of 19 two-story, wood frame and stucco garden style buildings on a nine-acre site, with a leasing office and a recreation center. Its 228 units include 144 one-bedroom units and 84 two-bedroom units, with the one-bedrooms measuring 668 sf and the two-bedrooms 1,006 sf. Rents range from $725 to $740 for the one-bedrooms and $910 to $950 for the two-bedrooms.

The Grand Terrace location is part of an Inland Empire apartment market that has been a leader in Southern California rent growth of late, according to industry reports. Along with the rent growth, the market enjoys low vacancies and strong demand because of the influx of new residents and relative lack of construction of new units. The strength of the market has attracted investors and spurred new development. Observers of the Inland Empire (Riverside and San Bernardino counties) apartment market also note that the demand for rental units has grown as housing prices in the region have risen. Although those prices remain low in comparison to prices in other Southern California counties, industry observers say, they make Inland Empire apartments much more attractive for investors and developers than they formerly were.