CBRE Announces Sale of 120-Unit Apartment Community in San Bernardino County for $14.3 Million

Deal received multiple offers from a variety of buyers; Highest price per unit for a property of that size

Los Angeles – CBRE announced that Hanes Properties, LLC, a Los Angeles-based real estate investment and management firm, has purchased Golden Sands, a 120-unit apartment complex in Victorville, Calif., for $14.25 million.

John Montakab, Stew Weston, and Dean Zander of CBRE represented the seller, Los Angeles-based real estate and property management firm Positive Investments, in the transaction. The buyer was represented by Braemon Hanes of Hanes Investment Realty, Inc.

The deal received multiple offers from a variety of buyers, including private investors, exchange buyers and fund advisors. The property ended up selling at the highest price per unit for a building of this size in the city.

Located at 15930 Nisquali Road, the apartment community sits on an 8.03-acre lot and consists of 96 two-bedroom units and 24 one-bedroom units. The buyer plans to completely renovate the asset in 2020 with major enhancements to five large courtyards to include a 50-person gazebo, two large pavilions, cabanas at two pool/spa locations, a playground and tot lot, and a 77 fruit tree orchard-maze and sport court.

Golden Sands is located less than one mile east of I-15, a major freeway that connects Victorville to Los Angeles County. The apartment community is three miles from The Mall of Victor Valley, a major destination in the area for shopping, dining and entertainment.

“Victorville is one of the fastest-growing markets in Southern California and is poised for the development of 800,000 square feet of retail and nearly 10 million square feet of industrial,” said Montakab. “Since 2000, Victorville's population has grown by 93 percent, largely due to the increased usage of the nearby Southern California Logistics Airport."

Weston added, “Victorville has developed as one of Southern California’s primary distribution hubs, with an estimated 60 percent of all goods traveling in SoCal coming through Victorville. This has caused residential developments in the area to become increasingly desirable.”

Victorville has experienced strong market fundamentals, with an annual rent growth of 6.7 percent, according to CBRE research. Victorville’s projected rent growth for the next four years ranks first in the Inland Empire at 4.31 percent. Multifamily vacancy in the U.S. fell to 3.6 percent in the third quarter of 2019, down 40 basis points from the prior year and the lowest level since 2000, according to a CBRE research report. Average rent rose 2.9 percent year-over-year, on par with the second quarter of 2019 and slightly higher than the historical average of 2.6 percent.