Location: 363 E. Gilbert Ave, San Bernardino CA 92404
Market: San Bernardino, CA
Size: 35,200 SF
Purchase Price: $8,025,000
Est. Project Level Return: 5-year IRR of 19.23%
Quest Capital Partners, Inc. in conjunction with Rosenwald Equities, LLC is pleased to announce its recent acquisition of Bernadine Senior Independent Living, a 71-unit age 55+ apartment community located in San Bernardino, CA. With an attractive price per door ($113k/unit) and over 40% upside in rents, this deal represents a tremendous value-add opportunity for Quest. In addition to raising current rents to market, there is additional upside by converting three unused spaces in the property into ADUs.
The San Bernardino market has historically had lower rent growth than other Southern California markets. However demand has been surging due to an influx of mostly low and medium-income households. Rents are relatively affordable compared to the greater Los Angeles market. Vacancy rates are at 2.6% and asking rents have grown 7% over the last 12 months.
“We are excited about this opportunity. Going into a potential recession, we project demand for lower-income housing and senior housing to remain extremely strong. The overall market demographics and rent trajectory appear favorable for the immediate to midterm future.”
—Ken Leon, Principal of Quest Capital Partners
Overall we are projecting a 15.31% net investor IRR over a 5 year hold.
Quest Capital is a boutique real estate investment firm focused on value-add investment property throughout the western region of the US. Visit quest-capital.com for more information on or email us at investments@quest-capital.com.
