Eagle Ridge Commands Nearly $12M

The property, which was 95% occupied at the time of the closing, consists of 56 one-bedroom and 88 two-bedroom apartments that range in size from 788 to 958 sf, with rents ranging from $715 to $825. The seller was Colton Ridge, an investment partnership based in Carmel, IN and the property at 1313 and 1315 S. Meadow Lane was constructed in 1979. Mogharebi says the sale closed at a cap rate of nearly 5.8%, with the sale working out to a price of $90 per sf.

The transaction continues the brisk pace of deals for Inland Empire and Orange County apartments, including a recent sale in Upland in which the property served as the upleg of a 1031 exchange. The buyer of the Upland property was represented by Steve Heri and Cara Weichman of the CB Richard Ellis Private Client Group. The complex includes 16 units at 571 E. Richland St. and sold for more than $2.3 million at a nearly 5.7% cap rate. Heri describes the property as "an excellent upleg" for the 1031 exchange because the complex was recently rehabilitated by the seller, Landmark Equity Fund, which raised rents closer to market levels. In addition, strong growth that's forecast for the Inland Empire allows room for the buyer, a local private investor, to increase rents in the near future, Heri adds. The Upland complex, which was 100% occupied at the time of the sale, was built in 1965 and rehabilitated in 2003 and 2004. Its 16 units include one one-bedroom, one-bath apartment and the remainder two-bedroom, one-bathroom units. "Though today's market is certainly geared toward sellers," notes Weichman, the purchase "achieved the buyer's core objective of increasing overall holdings and cash flow." The seller, Landmark Equity Fund, was represented by Juan Cardenas and Joe Montes of Re/Max Commercial Brokerage in Whittier.