The Towers at Riverwalk
Riverside, California
Arch Anchor, in partnership with Waterford Property Company and CrossHarbor Capital Partners, acquired the highly visible Towers at Riverwalk in May 2017 for $38M.
The well-amenitized twin building office campus is among the more recently developed projects in the Inland Empire and is centrally located in the western sub-market of Riverside, and boasts a high caliber office tenant, including: SchoolsFirst, New York Life, Fidelity & Ticor Title, the County of Riverside, among many others.
The partnership identified a major demographic shift in employment growth within the Inland Empire, along with the absence of new office development, which lead to incredibly attractive office leasing dynamics.
The partnership executed a successful business plan, including raising in-place rents by roughly 20% and extending the largest tenant, The County of Riverside, to a new seven-year lease with no termination rights. The buildings sold in separate transactions in 2018 and 2019 to SchoolFirst Credit Union, one of the largest credit unions in the county and an existing tenant at the project.
The project generated a greater than 40% IRR and 2x equity multiple on an approximately 2.5-year hold.
TYPE: Class-A Office Campus
SIZE: 210,000 RSF
ACQUISITION PRICE: $38M
SALE PRICE: $54M
STATUS: Sold (May 2018 / December 2019)
