Northern California – April 16, 2014 — MG Properties Group, a private San Diego-based real estate investor and operator, has announced the acquisition of four multi-family properties in California totaling 770 units.
“These acquisitions are an extension of the company’s strategy of growth throughout the western United States in markets where it has a long operating history and benefits from efficiencies of scale due to its existing portfolio,” according to Mark Gleiberman, MG Properties Group’s President.
“As active value-add operators with a long-term investment horizon, each of these acquisitions has a unique fit within our existing portfolio and they are good examples of the types of compelling investment opportunities we are seeking in today’s market,” Gleiberman adds.
The four acquisitions include:
Built in 2006, Sterling Village is a 186-unit community in the north-bay city of Vallejo. The high quality large floor plans and well amenitized common areas attract a variety of residents seeking an affordable alternative to housing in nearby infill Bay Area markets.
The sellers were represented by John McCullouch at Apartment Realty Advisors. The transaction was financed with a $19,825,000 10-year fixed-rate mortgage provided by Fannie Mae and arranged by Rob Prouty and Andrew Lucca at Key Bank Real Estate Capital.
Built in 1973 and 1976, Stoneridge is a well-located apartment community in southern Upland, with easy access to the 10 freeway and surrounded by a variety of retail amenities.
MG Properties Group plans to invest more than $2 million to address deferred maintenance items, improve the property’s common area amenities, and upgrade select unit interiors.
Stoneridge was purchased from an affiliate of Sares Regis. The sellers were represented by Margie Molloy, Dean Zander, and Vince Norris at Hendricks-Berkadia. The acquisition was financed with a $27.3 million 10-year fixed-rate mortgage from an affiliate of Guggenheim Partners LLC, arranged by Brian Eisner and Michael Presser at George Elkins Mortgage Banking Company.
Terramonte at La Verne:
The 48-unit property was built in 1985 and includes a mix of 1, 2, and 3-bedroom units. Previously known as the Falcon Street Apartments, the property has been renamed and will now be operated jointly with MG Properties Group’s nearby Terramonte Apartments.
MG Properties Group plans to invest nearly $10,000 per unit in the property to upgrade unit interiors, building exteriors, and the property’s grounds.
The property was purchased for $7,742,000 from Mike Rosenthal and Steve Waterman of Sussex Capital Group LLC. The sellers were represented by Filip Niculete & Pashootan Manoochehri at Marcus & Millichap. The acquisition was financed with a $5,540,000 bridge loan from Key Bank arranged by Andrew Lucca.
The 236-unit Marquee was built in 1965 and recently underwent a significant renovation to reposition unit interiors, upgrade to copper plumbing, and construct a new leasing center and fitness facility.
The luxury property provides a convenient commuting location combined with affordable living near the neighboring NoHo Arts District.
The property was purchased for $27,500,000 from Cirrus Asset Management Inc. The seller was represented by Robin Ossenbeck and Adrienne Barr at Hendricks-Berkadia.
All four acquisitions were made with MG Properties Group’s private capital group or in partnership with family offices.
Since December 2010, MG Properties Group has completed 21 apartment acquisitions totaling over 5,190 units at a value of over $630 million. The firm anticipates closing an additional $250 million in acquisitions within the next 12 months.
MG Properties Group (www.mgproperties.com) is a privately owned West Coast real estate owner and operator specializing in multi-housing assets. Over the last 20 years MG Properties Group has acquired 84 communities with its private investors and institutional joint venture partners totaling over 15,000 units, representing more than $1.4 billion in total asset value. The company’s current portfolio includes more than 10,000 units in California, Washington, Arizona and Nevada. MG Properties Group employs 300 professionals with in-house expertise in acquisitions and underwriting as well as asset, property, construction and investment management.