Universe Holdings Pays $53M for Inland Empire Apartments
By Greg Cornfield September 9, 2022 4:15 pm
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Multifamily investment is rolling in Southern California’s Inland Empire, particularly in the city of Riverside.
Los Angeles-based Universe Holdings has agreed to pay $53.4 million for a 160-unit property named Stonegate Apartments, and plans to upgrade its outdated units. Pacific Living Properties sold the property.
Institutional Property Advisors (IPA), a division of Marcus & Millichap (MMI), announced the deal and represented the seller.
Located at 6506 Doolittle Avenue, Stonegate features one- and two-bedroom floorplans with an average unit size of 800 square feet. Built in 1987 and partially renovated since, the property also includes a fitness center, a swimming pool, a spa, a barbecue area, a pet park, a playground and a business center.
“New ownership has the opportunity to renovate the unit interiors and capture over 40 percent of upside in rental income via renovation premiums and loss-to-lease capture,” IPA’s Kevin Green said in a statement.
IPA’s Alexander Garcia Jr. said average rents in the Riverside submarket are projected to grow 8 percent over the next 12 months and 27 percent over the next five years. The Inland Empire’s population growth has been fueled by its lower cost of living compared to nearby L.A. and Orange County markets, as well as rising demand for warehouse workers needed for the persistent influx of logistics centers. And with increased construction costs and challenges with the entitlement process, there is a lack of new multifamily development in the market, creating heightened demand.
“With its strong population growth, growing job opportunities and affordable cost of living, the Inland Empire checks all the boxes when it comes to demand drivers we look for in a new market,” Universe Holdings’ founder and CEO Henry Manoucheri said. “This is our third-largest acquisition in the Inland Empire, and we intend to continue growing Universe’s footprint in this booming multifamily market.”
Manoucheri’s firm plans to inject $100 million in the market over the next 24 to 36 months.
“We see significant opportunities across the Inland Empire and plan to aggressively pursue acquisitions to further grow economies of scale and establish a foothold in the market,” Manoucheri said.
Garcia Jr. and Green, along with IPA’s Christopher Zorbas, Greg Harris and Joseph Grabiec represented Pacific Living Properties and procured the buyer.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
