RANCHO CUCAMONGA, CA-Rreef has acquired the 624-unit Waterbrook Apartments from a joint venture of Beverly Hills-based Kennedy Wilson Inc.'s KW Multi-Family Management Group and Los Angeles-based Hanover Financial Co. Terms of the deal were not disclosed, but the buyer is believed to have paid about $95 million for the complex.
The 28-acre multifamily project, at 10400 Arrow Route, traded in a deal brokered by Sean Deasy of the Ontario office of CB Richard Ellis. Deasy called the sale "of the Waterbrook property "a significant milestone for the Inland Empire multifamily market" because the complex is one of the largest multifamily developments in the region ever to sell to an institutional buyer.
Institutional investors at one time rarely if ever looked to the Inland Empire, but growth in recent years has attracted them in increasing numbers, points out Bob Hart, president and CEO of KW Multifamily.
The Waterbrook complex comprises 49 separate two- and three-story buildings constructed in two stages in 1986 and 1988. The project was more than 95% leased at the time of the sale.
During the past few years, the sellers spent more than $3 million on improvements and renovations. The improvements by the Kennedy Wilson-Hanover partnership included remodeling of the leasing center and the existing fitness center, the addition of a second fitness center and renovations to 40% of the units.
The apartments are adjacent to the Rancho Cucamonga town center and close to a number of new developments, restaurants, retail shops and spas. The complex features amenities including a pool-side clubhouse, four swimming pools, a wading pool, three spas, four lighted tennis courts and resort-quality landscaping featuring a pond, fountains and streams.
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