Rancho Cucamonga, California – Acacia Capital has acquired Camino Real, a 272 unit garden-style community, from a joint venture between SARES•REGIS Group and institutional investors advised by J.P. Morgan Asset Management. This value-add opportunity closed on July-31 and was brokered by Tom Moran Jr. of Moran & Company’s California office who represented the seller in the transaction.
Graham Davidson, Senior Vice President at Acacia: “We have a very clear value add strategy identifying assets in growing markets. As a current owner in the Inland Empire, we have been tracking the strong job growth in this region. The addition of 108,900 jobs over the last two years with limited new supply has led to strong rent growth, which we expect will continue. Given the headroom between Camino Real’s rents and the rents of some of the newer properties in the area, we think that there is an opportunity to implement an interior and common area value add program at the property.”
Camino Real is located in Rancho Cucamonga, which is recognized as the crown jewel of the Inland Empire, boasting a highly affluent demographic, top performing public schools, and extraordinary lifestyle amenities. Camino Real is only a mile from the region’s 1.5 million sq. ft. premier retail, dining, and entertainment destination, Victoria Gardens, which is the “downtown” of Rancho Cucamonga. In addition, Camino Real is located in the Etiwanda School District which boasts some of the highest API scores in the entire Inland Empire. As the local economy continues to expand, the new owner of Camino Real has the opportunity to capitalize on the Inland Empire’s early cycle recovery and achieve outsized rent growth by implementing a value-add program that would appeal to the rapidly emerging class of high-income, move-up renters in this submarket.
Bill Montgomery, President of Multifamily Acquisitions for Investment & Development at SARES•REGIS Group: “The sale of Camino Real marks the successful execution of our development platform to build class A properties with our JV partners with the flexibility of longer term holds. We developed Camino Real in 2003 and the property has been a great investment for all partners.”
Camino Real is a garden-style community that was built in 2003. The property consists of 18 beautifully designed, two-story Craftsman-style buildings situated on an expansive 20-acre campus. This unique low density campus (13.6 units per acre) provides for a number of quality amenity spaces, including a large resort-style pool area, a fitness center, a business center, a dog park, a half basketball court, two children’s play areas, and large greenbelts and open spaces that create an attractive park-like setting.
The one-, two-, and three-bedroom apartment homes at Camino Real feature 9-foot ceilings, in-unit washers and dryers, white Whirlpool appliances, laminate countertops, and white Thermofoil cabinets. In addition, each unit includes a one-car detached garage.
For decades, the SARES•REGIS Group has been a pre-eminent developer and provider of comprehensive commercial and residential real estate services throughout the western United States. SARES•REGIS Group manages a portfolio of over 15,000 units for its partners and investor clients valued at more than $4.0 billion. Since its inception in 1993, SARES•REGIS Group has acquired or developed over 20,000 apartments and homes valued at more than $7.0 billion throughout California, Colorado, and Arizona.
SARES•REGIS Group’s Commercial Division has earned the reputation as a leading west coast real estate firm recognized for its accomplishments in the development, acquisition and management of quality industrial and commercial properties. Since 1993, SRG Commercial has successfully developed and acquired more than 78 properties in excess of 40 million square feet with an aggregate value in excess of $2.5 billion.
Since forming its first institutional fund in 1992, Acacia Capital Corporation has managed a series of commingled investment funds that have acquired over $4.5 billion of debt and equity positions in real estate with a primary focus on residential property. Acacia’s development, finance and real estate operating expertise have allowed it to deliver attractive risk adjusted returns over an extended period of time.
Acacia has invested in multifamily property located in California, Arizona, Washington, Oregon, Texas, Nevada and Utah. Acacia has acquired interests in over 95 apartment properties with a total cost basis of over $1.7 billion. Currently, Acacia has a portfolio of over 13,000 units in the Western United States.
J.P. Morgan Asset Management – Global Real Assets
J.P. Morgan Asset Management – Global Real Assets has more than $84 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia Pacific, as of March 31, 2015. With a 45-year history of successful investing, J.P. Morgan Asset Management – Global Real Assets’ broad capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure and transportation strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions. The Global Real Assets team is part of J.P. Morgan Asset Management's Alternatives Investments business, which collectively manages over $120 billion in client assets across real assets, hedge funds, credit and private equity. For more information: jpmorgan.com/institutional/global_real_assets