Thanks to the rise in suburban migration in Southern California, the Inland Empire’s multifamily market is outperforming the rest of the region, and out-of-state investors are tapping in.
Texas-based MAG Capital Partners has acquired Charlmont Village, a 55-unit townhome community in the city of Ontario, for $23.9 million, or about $434,545 per unit. That’s more than twice the median price per unit in the Inland Empire, which jumped 31.2 percent over the past year to $196,783 per unit, according to a recent report from NAI Capital.
The acquisition comes after other big multifamily trades in the area near the Ontario International Airport. For example, in the nearby Rancho Cucamonga, the Solamonte Apartments sold in September 2021 for $226.6 million, or about $434,856 per unit, and Victoria Arbors sold last summer for $137.6 million, or about $431,348.
MAG Capital plans to complete interior and exterior upgrades to the five-acre Charlmont Village at 1625 East G Street, about 35 miles east of Downtown Los Angeles. The gated community was completed in 1986 with a mix of two-, three- and four-bedroom townhomes that are two stories tall with private yards and attached two-car garages. The property also includes a swimming pool and clubhouse.
“It is no easy task finding good multifamily opportunities in Southern California,” Andrew Gi, principal at MAG Capital, said in a statement. “The community is in a well located and desirable neighborhood, and we look forward to bringing our vision to Charlmont Village.”
Judd Dunning of DWG Capital Group’s L.A. office structured the acquisition financing.
“Demand from investors to own multifamily assets in Southern California remains robust, and lending terms are competitive despite turmoil in the debt markets,” Dunning said.
Gregory Cornfield can be reached at email@example.com.
UPDATED: This story has been updated to include comparable multifamily sales in the Inland Empire.