Thank you for sharing!

Your article was successfully shared with the contacts you provided.

REDLANDS, CA-American Realty Advisors of Glendale, Calif. sold a 68-unit apartment building in Redlands to a private investor for $6.025 million, in a deal that the seller described as a value-added play after it acquired a foreclosed property.

The Arroyo Vista apartment complex at 1444 Orange Ave. was in foreclosure and had been under-managed by the defaulted borrower when American Realty acquired the property in 1994, according to an American Realty announcement on the deal. The investment advisory firm renovated and improved the property and focused on reducing tenant turnover, according to portfolio manager Greg Blomstrand and asset manager Frank Coari, who added that the improvements enabled them to raise rents as well.

American, which sold the asset on behalf of a pension fund client, obtained one of the highest prices paid per unit for comparable properties in the area, $88,600 per unit. Blomstrand and Coari also cited substantial investor interest in apartment buildings in the Inland Empire, noting that the listing by the Ontario office of CB Richard Ellis, which represented American in the recent transaction, attracted more than 15 potential buyers.

Investors have grown more interested in Inland Empire apartments of late because the population is growing while the supply of new apartments has been limited by a slow entitlement process. Inland Empire apartment experts also say apartment supply has been limited in the past because single-family homes were so inexpensive in comparison to apartments that builders concentrated on houses rather than apartments.

The Arroyo Vista was built in 1989 and consists of nine two-story, wood frame and stucco buildings on 4.2 acres. The 68 units include 40 two-bedroom, two-bath apartments and 28 one-bedroom, one bath apartments, evenly divided between first-floor and second-floor units. One-bedrooms are 720 sf and two-bedrooms 966 sf.American provides of institutional real estate investment management services including acquisition, disposition, development, structured finance, and active asset management. It has more than $1.3 billion in assets under management.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.