Interwest Cashes Out on Inland Empire Apartment Community

FPA Multifamily sold the property for $45.6 million

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The owner of ReNew Mills, a 142-unit multifamily community in Ontario, Calif., is the latest real estate firm to capitalize on the surging rental markets in the Inland Empire.

FPA Multifamily sold the apartment property to San Diego-based Interwest Capital Group for $45.6 million. That’s equal to about $321,127 per unit, or about 63 percent higher than the median price per unit in the Inland Empire.

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CBRE announced the deal and represented the seller.

The new owner plans to complete upgrades at ReNew Mills at 551 East Riverside Drive, including interior and exterior improvements. It’s located on 8.8 acres adjacent to the Ontario Ranch master-planned community.

Inland Empire commands an outsized amount of attention due to job growth and outpaced rent growth in the life sciences industries and industrial real estate. CBRE research shows the Inland Empire multifamily market ranked third nationally at the start of the year when it came to year-over-year rent increases, with 16.8 percent.

“The increase in demand for high-quality renovated suburban product has pushed rental rates to new highs over the past year,” CBRE’s Dean Zander said in a press release. “The area’s robust economic and population growth has created an incredible market for these types of properties.”

The 1980s-built ReNew Mills features a fitness center, a resident clubhouse, a dog park, and a resort-style pool and spa. CBRE’s Zander and Stewart Weston represented the seller.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.