Geoff Palmer Sells Inland Empire Community in 2023’s Largest SoCal Multifamily Deal
It's the first multifamily deal in California for buyer Archway Equities
By Greg Cornfield May 16, 2023 4:20 pm
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Multifamily investment is mounting in Southern California’s Inland Empire.
An entity tied to billionaire developer Geoff Palmer has sold a 385-unit multifamily community in Montclair, Calif., in Pomona Valley for $150 million. Real estate investment firm Archway Equities acquired the property at 97 percent leased, for the company’s first multifamily deal in California.
Citing CoStar data, representatives for the buyer said the property, called The Paseos at Montclair North, is so far the largest of the 546 multifamily transactions to close this year in Southern California, and only the second transaction to trade at more than $100 million.
“Somewhere along the way, cap rates between the Sun Belt and coastal markets inverted and select pockets of Southern California should now provide more attractive risk-adjusted returns in the current environment,” Archway President Sean Moghavem said in a statement.
The Paseos was developed in 2014, encompassing nearly two full blocks at 4914 Olive Street. The community includes studio, one-, two- and three-bedroom townhomes, as well as two resort-style pool areas with spas and cabanas, a fitness facility, a yoga room, a conference center and an entertainment lounge.
Archway has more than $1 billion in commercial real estate assets under management, including 5,000 apartments across the Sun Belt.
“We are still very bullish long term on multifamily in the Sun Belt because of its favorable business climate, low cost of living, and continued job and population growth,” Moghavem explained. “Having said that, we continue to see aggressive pricing that’s not factoring in short-term headwinds such as supply, rising property taxes and insurance costs. We’ll always look to grow our Sun Belt portfolio but are also actively seeking opportunities in the Inland Empire, Orange County and San Diego.”
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
