Victorville, CA – $27.4 million sale of a two-property, fully occupied apartment portfolio totaling 320 units in Victorville, Calif., a city in the High Desert region of the Inland Empire. The properties, which are located approximately 2.5 miles apart, are both garden-style assets built in 1988 and renovated in 2014. In total, they include 41 two-story buildings and are situated on just under 17 acres of land.
David Baird, National Director Institutional Investments with Sperry Commercial Global Affiliates, represented the seller, Dublin, Calif.-based Thomas Tomanek & Assoc., as well as the buyer, Denver, CO-based Sagebrush Capital Holdings. The closing cap rate was 6.5 percent.
“This transaction proved beneficial to both the buyer and the seller,” said Baird. “The seller, which is moving its portfolio to Northern California and has owned this property since 1998, was able to realize a significant return on investment. The buyer, which made its first acquisition in California with this transaction, acquired a quality, stabilized portfolio that stands to see a steady increase in rents and appreciation over the coming years in an up-and-coming tertiary market that continues to grow its job base and population.”
Offering quick access to the 15 freeway, the portfolio includes The Colony Apartments, a 200-unit community located at 14450 El Evado Road; and Golden Sands Apartments, a 120-unit community located at 15930 Nisqualli Road. The mix of units at The Colony is made up of two-bedroom and three-bedroom units, while the Golden Sands Apartments consists of a mix of one-bedroom and two-bedroom units. Both properties offer two pools, a basketball court, on-site management and maintenance, barbeque areas, and a playground.
Located in Southern California along Interstate 15, 90-miles northeast of Los Angeles, the City of Victorville has successfully established itself among the most cost-effective locations in California to do business. Many businesses choose to operate in Victorville because of the investments the city has made in its public infrastructure system; proximity to major transportation routes; large, skilled labor force; family-friendly community; and commitment to promoting a business-friendly environment. Over the past 15 years, Victorville has experienced robust industrial and retail expansion, and is poised to continue that growth.
About Sperry Commercial Global Affiliates, LLC: Sperry Commercial Global Affiliates, LLC will offer the highest level of commercial real estate services available through thoughtful, cooperative, and ethical practices. The firm is headquartered in Irvine with 15 offices located throughout the Western United States. Unique to Sperry Commercial Global Affiliates, LLC are a system of tools for affiliates that include a comprehensive real estate intranet and transaction management platform named Sperry CENTRAL and a custom designed marketing support software system called SperryLINK, among other immediate industry advantages. For more information, visit www.sperrycga.com.