Continuing an aggressive buying blitz throughout Southern California, Phoenix Realty Group spent $65 million for a pair of Inland Empire apartment complexes. The 366-unit Windrush Village Apartments in Colton, CA sold for $34.5 million, while 268-unit Galleria at Towngate Apartments in Moreno Valley, CA went for $30.8 million.
The two acquisitions brings Phoenix’s ownership of Southern California apartments to more than 3,200 SoCal units, with a total value of $387 million. Phoenix bought the properties on behalf of its institutional real estate fund.
Apartments in Riverside and San Bernardino counties–known together by the boosterish term, Inland Empire–have value because of their proximity to job centers in their higher priced, adjoining Los Angeles and Orange Counties, says Phoenix Realty’s acquisitions direcdtor, Edward Ratinoff in a statement.
Although the Inland Empire has been one of the weakest markets in single-family housing in the wake of the credit freeze and foreclosure crisis, the location of institutional-quality apartment complexes make good sense for investors, according to Ratinoff. The “value added” investments, as Ratinoff describes them, are also attractive to Phoenix because of local amenities, including highly ranked schools and shopping
As a whole, the Inland Empire is “key to the recovery of California, the eighth-largest economy in the world,” says Ratinoff.