Riverside, California – In a significant real estate deal, CBRE negotiated the $10.15 million sale of Ramona Oaks Apartments, a residential complex located in Riverside. The sale, which estimates out to roughly $231,000 per unit, consists of the 44-unit multifamily property located at a great site where Ramona Drive crosses Olivewood Avenue.
About the Ramona Oaks Apartments in Riverside
Designed in 1972, Ramona Oaks provides a range of residential choices with 809 square foot one- and two-bedroom flats. The units are well-equipped with modern amenities such as electric kitchens, wood plank and carpet flooring, and private patios or balconies. Thanks in large part to recent restorations including new roofing over its five buildings, the complex also boasts community conveniences including a swimming pool, on-site laundry facilities, and covered parking.
What makes Ramona Oaks Apartments in Riverside so popular
Being close to State Route 91 and within simple reach of important educational institutions like Riverside City College and the University of California, Riverside, this property’s favorable location adds to its attractiveness. This close proximity makes it a popular place for faculty members as well as students, therefore improving the investment value.
Eric Chen, Kevin Sin, and Blake Torgerson of CBRE handled the deal for both the buyer, WeJ&J LLC, and the seller, AB Ramona Oaks. This purchase represents a major investment in the Riverside real estate market, where strong rental interest makes the interest for multifamily properties stronger.
Eric Chen commented on the uniqueness of this deal.
“This is a rare multifamily transaction where a buyer assumes a 40% loan-to-value loan with a 60% down payment,” said Chen. “The buyer took advantage of a 3.35% interest-only assumption through 2027 while capturing the 40% upside in rents as a value-add opportunity. This transaction speaks volumes on Riverside’s strong rental demand and scarcity of these opportunities. This is also the third multifamily transaction done by our team for the same seller this year.”
The Riverside’s multifamily housing market is thriving
Along with reflecting WeJ&J LLC’s strategic investment strategy, this purchase highlights Riverside’s dynamic market conditions. Recent CBRE analysis shows that total multifamily investment sales in the area almost doubled in the second quarter of 2024, rising from $231,2 million in the first quarter to $ 457 million.
Third such transaction CBRE has done for the same seller this year: the sale of Ramona Oaks Apartments shows a strong cooperation and CBRE’s major influence in changing Riverside’s multifamily housing market. As the world’s largest commercial real estate services and investment firm, CBRE continues to lead with its comprehensive, integrated services, serving a broad spectrum of real estate investors and occupiers globally.
The California housing market this year and real estate prices statewide
Overview of current home prices
The real estate market in California is still showing increasing trend in house prices. The median price for an existing single-family house has reached $888,740 as of August, according to the most recent estimate from the California Association of Realtors, a little rise of 0.2% from last month. The median house sales price has increased by 3.4% from August 2023 year over year. Some areas nevertheless have homes as affordable as $236,000 in spite of these rising rates.
Sales trends and real estate market sentiments in California
Home sales fell along with the rise in house prices. Driven mostly by the Federal Reserve’s expected changes to interest rates, many possible purchasers are using a “wait and see” approach. Realtors Association senior vice president Jordan Levine saw a decline in closed house sales in August as consumers speculated on the date of Federal Reserve rate decreases. The average 30-year fixed mortgage rate as of September 19 was 5.63%; signs from the Federal Reserve indicate a drop expected.
What is expected to happen with the housing prices in California in the upcoming period?
Melanie Barker, the president of the association, sees an autumn season increase in home affordability. This hope stems from the possibility of declining mortgage rates, which would lower borrowing costs and hence stimulate buyer interest and market activity.
How to find affordable housing in California? It’s hard, but not impossible.
The Northern California and Central Valley areas offer the most affordable choices for anyone looking to buy a house in California without stretching their means. Counties like Lassen, Trinity, and Siskiyou in Northern California, along with Kings and Tulare in the Central Valley, reported median sold prices significantly below the state average, making them attractive for homebuyers seeking affordability.
Bay area still has the highest housing prices in California
On the other hand, the Bay Area—where homes in counties like San Mateo and Santa Clara can approach and beyond $1.9 million—is where California has the highest home prices. High home prices also abound in Southern California; Orange County and its environs show median values near or above $1.4 million.
The fluctuations in house prices across various areas as California’s housing market develops draw attention to the several opportunities and difficulties consumers in the current economic environment face.
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