Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced today the sale of Monterra Ridge Apartments, a 232-unit apartment property in the Santa Clarita Valley city of Canyon Country, California. The asset sold for $62.5 million, which represents $269,397 per unit.
“Santa Clarita is a growing city with strong economic fundamentals including a 25.6 percent increase in population since 2000, low apartment vacancy and projected income growth of 13.3 percent over the next five years,” said Joe Grabiec, IPA senior director. Grabiec, Kevin Green, IPA senior director and Greg Harris, IPA executive director, represented the seller, a joint venture between Gelt Inc. and Uhon Inc. The buyer is Bag Investments. “This is a sizable asset in a sought-after submarket with an opportunity to enhance yield by continuing the strategic renovation program,” commented Green.
The community is close to the 14 and 5 freeways and less than two miles from retail and restaurants at Canyon Center, Canyon Country Plaza, Canyon Country Village and the El Segundo Shopping Center. Westfield Valencia Town Center, Six Flags Magic Mountain, multiple golf courses and Golden Valley Ranch are all within a short drive. Built in 1985, Monterra Ridge is comprised of 14 residential buildings on more than 21 acres of landscaped grounds. The unit mix is one- and two-bedroom apartments, some with private yards.
“With only 573 units under construction in the City of Santa Clarita, the multifamily development pipeline is limited,” added Harris. “The dearth of new construction and scarcity of mid- to large-size multifamily assets in Santa Clarita Valley built prior to 2000 will help Monterra Ridge retain its position as one of the submarket’s premium rental housing options.”