What a $10.95 Million San Bernardino Apartment Sale Tells Us About Multifamily Values

A recent $10.95 million multifamily sale in San Bernardino provides another useful data point for apartment owners trying to understand the value of their properties in today's Inland Empire market.

Mountain View Apartments, a 67-unit apartment community located at 1475 East Date Street in San Bernardino, recently sold for approximately $163,433 per unit. The all-cash transaction closed at a 6.43% current capitalization rate, according to CBRE.

For owners of apartment buildings in San Bernardino, Highland, Colton, Bloomington and Loma Linda, however, the bigger question isn't what this property sold for.

It's what does this transaction tell us about the value and potential of your property?

Understanding the San Bernardino Multifamily Sale

Mountain View Apartments consists of 67 units across nine residential buildings and was built in 1985. The property includes a combination of one- and two-bedroom apartments averaging approximately 776 square feet.

Its location also provides access to the 210, 215 and 10 freeways and proximity to major regional demand drivers, including Cal State San Bernardino and St. Bernardine Medical Center.

Perhaps most significant for multifamily investors is the transaction itself:

$10.95 million purchase price
$163,433 per unit
Approximately $208 per square foot
6.43% current capitalization rate
All-cash transaction

Those numbers give local multifamily owners valuable market information—but they don't automatically establish what another apartment property is worth.

Your Apartment Building Isn't Valued on Price Per Unit Alone

It's tempting for an owner to see a property down the street sell for approximately $163,000 per unit and immediately multiply that number by their own unit count.

Multifamily valuation doesn't work that way.

Two apartment buildings located only a few miles apart can have significantly different values based on current rents, unit mix, vacancy, operating expenses, property condition, deferred maintenance, location, financing environment and potential rental upside.

More importantly, investors are purchasing an income-producing asset.

That means understanding net operating income, capitalization rate and the property's future potential can be just as important as looking at recent comparable sales.

What Should Local Multifamily Owners Be Asking?

If you own apartments in San Bernardino, Highland, Colton, Bloomington or Loma Linda, a transaction like Mountain View Apartments creates an opportunity to reevaluate where your property fits in the current market.

That doesn't necessarily mean it's time to sell.

It may mean it's time to understand your options.

Could improving operations increase the property's value? Are rents positioned appropriately for the market? Does deferred maintenance need to be addressed? Would additional capital improve long-term returns? Is there enough equity to acquire another multifamily property? Could a future sale and 1031 exchange help reposition that equity into a different investment?

And perhaps most importantly:

What do you ultimately want this property to accomplish for you?

Strategy Before the Transaction

Multifamily ownership should not begin and end with deciding whether to sell.

A better approach begins by understanding the property, its current performance, the owner's equity position and the owner's long-term objectives.

From there, an owner can evaluate whether the right strategy is to hold, improve, reposition, refinance, acquire additional units, prepare for a future disposition, explore a 1031 exchange or take the property to market today.

Recent San Bernardino multifamily transactions provide important market data. But the most important number for an apartment owner isn't necessarily what another property sold for.

It's understanding what your property is worth, what your equity can accomplish, and what your next move should be.

Ellie Ochoa specializes in Inland Empire multifamily commercial real estate, working with apartment owners and investors throughout San Bernardino, Highland, Colton, Bloomington and Loma Linda. Her strategy-first approach helps owners evaluate multifamily property values, investment opportunities, acquisitions, dispositions and long-term real estate strategies.

Market information is provided for general informational purposes and should not be considered tax, legal, or financial advice. Property owners should consult their appropriate professional advisors when evaluating tax or investment strategies.