FONTANA, CA - The Bascom Group has acquired Laurel Tree, a 36-unit apartment community located at 17923 Arrow Boulevard, Fontana, California for $5,250,000. The sale represents a price of $145,833 per unit or $160.71 per square foot. Marcus & Millichap represented both the buyer and seller in the transaction.
Manufacturer's Bank provided the new loan. James D'Argenio sourced and managed the transaction for Bascom.
Built in 1989 and sitting on more than two-and-a-half acres, Laurel Tree offers residents a low-density living community, a central Inland Empire location, and easy access to key employment centers. The property's unit mix is dominated by spacious three bedroom units, offering a single-family type floorplan unique to this submarket. Laurel is set to take advantage of accelerated population growth in the Inland Empire as rising prices and rents in Los Angeles and Orange County force residents to look elsewhere for more affordable housing.
The Redlands-Fontana-High Desert submarket has developed into a growing economic hub, with a strong medical base, world-class transportation and logistics centers, and industries such as construction, leisure, and hospitality experiencing substantial year-over-year growth. The site of the former Rialto Airport, a short distance from Laurel Tree, is being redeveloped into a 1,500-acre master-planned mixed-use community. The new development will include 107 acres of mostly for-sale housing, 352 acres of public space, and 991 acres of retail, office, and industrial development.
Fontana's apartment market continues to strengthen as average rents have increased for six consecutive years to $1,303, or a 39% increase. Despite a $316 average rent increase over the previous 12 months, occupancy remains high at 97.4%, making the city one of the tightest rental submarkets in Southern California. Even so, the Inland Empire's stock of multifamily units increased by just 1.4% over the past year, as single-family construction accounted for 75% of new residential development. This favorable development pipeline limits direct competition and creates an attractive environment for Bascom's repositioning of Laurel Tree.
James, Senior Principal for Bascom, adds "With 80% three bedroom units onsite, Laurel Tree is well positioned to attract young professionals and families seeking quality, rental housing. With companies like Amazon, Niagara Water, and Monster taking millions of square feet of commercial space within a short drive of the property, job growth will drive housing demand and increase pressure on existing rental stock."