Tailwind Investment Group—a Newport Beach-based privately held commercial real estate investment management company focused on value-add and core-plus multifamily investments in the Western U.S.—and The Roxborough Group—a real estate private equity firm based in San Francisco—announced the acquisition of The Vue, a 197-unit multifamily property in San Bernardino, Calif., directly adjacent to California State University, San Bernardino. The joint venture purchased the asset from a N.Y,-based investor for $53.6 million and plans to invest a further $3 million in capital improvements to implement an interior-unit renovation program and upgrade the property’s exterior and common areas.
“The Vue presents a strong opportunity in today’s market to execute a value-add business plan on the majority of the property’s units, which have yet to be renovated and do so in a high growth market where we continue to see strong fundamentals as they relate to population and employment growth,” says Tailwind Managing Partner Parker Pinkalla. “Inland Empire submarkets like San Bernardino offer renters an attractive alternative to higher cost areas such as Los Angeles County. With a shortage of new rental housing supply in the construction pipeline, we feel strongly about our ability to attract our target renter demographic and give them a quality housing experience.”
Tailwind Investment Group worked with Dean Zander and Stewart Weston of CBRE to source the opportunity off-market.
The joint venture will commence its renovations at The Vue immediately, upgrading the property’s exterior and common areas, including modernization of the property’s entrance, pools, leasing office and fitness center. The interior unit renovation program will provide a contemporary and upgraded scope that will include hard surface countertops, faux-stainless steel appliances and upgraded cabinets, fixtures and hardware.
“As we start to invest Roxborough Fund III, L.P., a $518 million vehicle, The Vue offers hallmarks we are currently looking for in the multifamily space: a structurally undersupplied market, multiple catalysts for job growth, and an actionable business plan to create value.” says Nick Bryer, senior vice president at The Roxborough Group. “The supply/demand imbalance in the Inland Empire and the planned rehabilitation program along with implementing professional local management will allow the partnership to drive bottom line growth and deliver a best-in-class resident experience to our tenants.”