Equity Residential REIT Markets 384 Units

RIVERSIDE, CA-Chicago-based apartment REIT Equity Residential has placed a 208-unit complex here and a 176-unit complex in Rancho Belago on the market, tapping Hendricks & Partners as listing agent. The Hendricks & Partners listing agents are Paul Runkle of the Inland Empire office, Vince Norris of the Warner Center office and Dean Zander in the company's West Los Angeles office.

The 208-unit property in Riverside is View Pointe Apartment Homes, which was built in 1998. The 176-unit complex, which was built in 2005, is the Reserve at Moreno Valley along the Moreno Valley Ranch Golf Course in Rancho Belago.

The Hendricks & Partners brokers describe the complexes as class A, low-density, core properties. In addition to the core aspect of both properties, they cite a number of factors that are expected to add to their appeal to both private and institutional investors. These include their locations near freeways, the recent construction, the strong occupancy and the resurging interest in the Inland Empire, as well as the proximity of jobs, shopping, entertainment and other amenities.

Norris comments, “REITs and a handful of other multifamily investors have dominated Southern California’s +100-unit acquisitions in 2010, leaving many institutional and large private investors on the sidelines." The properties, Norris says, are being offered at "an elusive 6% cap rate."

Zander adds that both complexes are professionally managed, in excellent condition and maintain or exceed 96% occupancy. Additionally, both are strategically located within their respective markets and feature amenities including full-sized washers and dryers, central air, gated pools, abundant parking and fully furnished leasing centers, clubhouses, business centers and fitness facilities. View Pointe also features a lighted tennis court and has a recorded map for condominium purposes.

“There are a few multifamily transactions brewing in the Inland Empire right now,” notes Runkle. He points out that the Reserve was developed by Alliance Residential and View Pointe by AG Spanos, the latter with a Canyon Crest location near UC Riverside.

View Pointe includes 17 two-story buildings on over 26 acres located at 5059 Quail Run Rd. in Riverside; units there average over 900 square feet and include one to three bedrooms and one or two baths. The Reserve comprises 20 two and three-story garden-style buildings on over 17 acres at 15100 Moreno Beach Dr.; it consists of 73% two and three bedroom units that average nearly 1,000 square feet. In-place rents at both properties average only $1.20 per foot, and $1,138 per month, "indicating significant room for future rent growth," Runkle says.

Equity Residential is offering both properties debt-free, with a bid deadline of Oct. 7.