Archway Equities has bought a 385-unit luxury apartment complex in Montclair for $150 million — the largest multifamily deal to close this year in Southern California.
The Beverly Hills-based real estate investment firm purchased The Paseos at Montclair North at 4914 Olive Street, the Commercial Observer reported. The seller was a firm tied to billionaire developer Geoff Palmer.
The Mediterranean-style complex in the Inland Empire’s Pomona Valley is 97 percent leased.
The Paseos, built in 2014, includes studio, one-, two- and three-bedroom townhome-style apartments that take up nearly two blocks north of the Montclair Place mall and Interstate 10.
It contains two resort-style pools with spas and cabanas, a gym, yoga room, conference center, an entertainment lounge and a central park with a concert amphitheater and fountain, according to its website.
“Somewhere along the way, cap rates between the Sun Belt and coastal markets inverted and select pockets of Southern California should now provide more attractive risk-adjusted returns in the current environment,” Archway President Sean Moghavem said in a statement.
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The Paseos property is so far the largest of the 546 multifamily transactions to close this year in Southern California, and only the second deal to trade at more than $100 million, according to CoStar data.
Archway, founded in 1974, has more than $1 billion in commercial real estate assets under management, including 5,000 apartments across the Sun Belt, according to its website., which mentions its major markets of Dallas, Austin, Raleigh, Nashville and Atlanta. Since 2010, the company has concentrated on multifamily.
— Dana Bartholomew