SAN DIEGO -- MG Properties Group, a private San Diego-based real estate investor and operator, announced that it has acquired four multifamily properties in California for more than $80 million. The properties total 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 added.
The four acquisitions include:
--Stoneridge, a 300-unit property in southern Upland built in 1973 and 1976. MG Properties 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, of 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, a 48-unit property built in 1985 that includes a mix of one-, two- and three-bedroom units. Previously known as the Falcon Street Apartments, the property has been renamed and will now be operated jointly with the new owner's nearby Terramonte Apartments.
MG Properties 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 and Pashootan Manoochehri, of Marcus & Millichap.
The acquisition was financed with a $5.54 million bridge loan from Key Bank arranged by Andrew Lucca.
--Sterling Village, a 186-unit community in Vallejo built in 2006.
The sellers were represented by John McCullouch at Apartment Realty Advisors. The acquisition was financed with a $19,825,000, 10-year fixed-rate mortgage from Fannie Mae and arranged by Rob Prouty and Andrew Lucca at Key Bank Real Estate Capital.
--The Marquee, a 236-unit apartment built in 1965 that recently underwent a renovation of unit interiors that included an upgrade to copper plumbing, construction of a new leasing center and a fitness facility.
The property was purchased for $27.5 million 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's private capital group or in partnership with family offices.
Since December 2010, MG Properties has completed 21 apartment acquisitions totaling over 5,190 units at a value of more than $630 million. The firm anticipates closing an additional $250 million in acquisitions within the next 12 months.
Over the last 20 years MG Properties has acquired 84 communities with its private investors and institutional joint venture partners totaling over 15,000 units and 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.