Weidner Apartment Homes has purchased Stonegate at Towngate, a 552-unit apartment complex in Moreno Valley, for $98.55 mil ($178k/unit) in a deal we’re told represents one of the highest prices for a single asset market rate sale in the Inland Empire in the past year. The property was sold by San Diego-based Davlyn Investments Inc, who acquired the community just after it was completed in 2007.
Located in the Towngate master-planned neighborhood, the property is located at 12640 Memorial Way Dr, just southeast of the Hwy 60 and I-215 interchange. Stonegate at Towngate sits across the street from over 2.3 msf of commercial space including the Moreno Valley Mall and four associated retail centers. It is just minutes from two multi-billion dollar business parks being developed or planned within Moreno Valley.
Stonegate at Towngate is the largest apartment community in Moreno Valley and the 12th largest asset in the Inland Empire, boasting some of the most generous unit sizes and most complete amenity packages within the market. Tenants enjoy amenities including two pools and spas, an outdoor media lounge, a luxurious leasing office, fully-equipped fitness center, indoor and outdoor kitchens, a large clubhouse, business center and more, situated on over 26 acres of landscaped grounds.
The complex offers mostly two- and three-bedroom units, averaging nearly 1.1k sf in size. The units feature in-suite washer/dryers, central air, nine-foot ceilings, private patios or balconies and many include a private garage as well.
Dean Zander and Spencer Scott with Berkadia represented the seller in the transaction. Weidner is out of Kirkland, WA. Berkadia also arranged the new 75% LTV acquisition financing.
According to Zander, “Stonegate represented a strategic value-add opportunity; with only one-third of the units upgraded to some degree. Minimal additional interior upgrades will allow the buyer to achieve a significant rent premium over the current rental rates, while maintaining very strong occupancy.”
According to Realfacts Inc, the average apartment market rent in Moreno Valley has increased more than 7% over the last 12 months while maintaining one of the highest occupancy rates in the Inland Empire at 96.8%. The City of Moreno Valley reports an inventory of less than 2,400 approved multifamily units and AXIOMetrics Inc currently reports no construction activity. Rents are expected to increase further as the market struggles to meet the housing needs of the expanding population.