Marcus & Millichap Inc.
11/15/2024 | Press release | Distributed by Public on 11/15/2024 13:46
Marcus & Millichap Closes $25 Million Nine-Property Inland Empire Apartment Portfolio Sale
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Marcus & Millichap Closes $25 Million Nine-Property Inland Empire Apartment Portfolio Sale
November 15, 2024
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ONTARIO, Calif., Nov. 15, 2024 - Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of a nine-property portfolio of eight apartment buildings and a four-tenant retail center in Fontana, California. The properties sold for $25,486,000.
"We conducted over 50 property tours, generated more than 30 offers, negotiated nonrefundable and pass-through deposits for the seller, and closed with six different buyers," said Douglas McCauley, senior managing director investments in Marcus & Millichap's Ontario office. "We closed all the apartment transactions at a sub 4% capitalization rate and each transaction was either all-cash or seller financed and closed quickly." McCauley, along with Marcus & Millichap's David Covarrubias and Bruce Rajaee represented the seller, EK Apartments LLC, and procured the buyers.
The portfolio has 108 residential units and a 10,627-square-foot retail center 100% occupied by a mini mart, laundromat, restaurant, and dessert shop. Constructed mostly in the 1980s, the majority of the residential assets have two-bedroom floor plans with 70% below market rents.
The properties are located near Historic Route 66/Foothill Boulevard, two miles from Interstate 10, which gives tenants access to Los Angeles and Palm Springs. Foothill Boulevard has an average daily traffic count of over 55,000 vehicles per day and nearby dining and shopping options including Cardenas Markets, Walgreens, Superior Grocers, El Super, Stater Bros. Markets, and Smart & Final. Downtown Fontana, the Fontana Metrolink Station, and Chaffey College Fontana Campus are within a short drive.
"We conducted over 50 property tours, generated more than 30 offers, negotiated nonrefundable and pass-through deposits for the seller, and closed with six different buyers," said Douglas McCauley, senior managing director investments in Marcus & Millichap's Ontario office. "We closed all the apartment transactions at a sub 4% capitalization rate and each transaction was either all-cash or seller financed and closed quickly." McCauley, along with Marcus & Millichap's David Covarrubias and Bruce Rajaee represented the seller, EK Apartments LLC, and procured the buyers.
The portfolio has 108 residential units and a 10,627-square-foot retail center 100% occupied by a mini mart, laundromat, restaurant, and dessert shop. Constructed mostly in the 1980s, the majority of the residential assets have two-bedroom floor plans with 70% below market rents.
The properties are located near Historic Route 66/Foothill Boulevard, two miles from Interstate 10, which gives tenants access to Los Angeles and Palm Springs. Foothill Boulevard has an average daily traffic count of over 55,000 vehicles per day and nearby dining and shopping options including Cardenas Markets, Walgreens, Superior Grocers, El Super, Stater Bros. Markets, and Smart & Final. Downtown Fontana, the Fontana Metrolink Station, and Chaffey College Fontana Campus are within a short drive.
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About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.