(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
SAN DEIGO-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that San Diego-based MG Properties Group has completed two multifamily acquisitions in Temecula and Daly City, CA. The purchases total $58 million.
MGPG has purchased Sage Canyon Apartments, a 344-unit multifamily property in downtown Temecula for $38 million from the Bascom Group LLC, based in Irvine, CA. The firm has also purchased Pacific Place Apartments, a 72-unit, mixed-use, multifamily and retail property in Daly City, for $20.35 million. The seller was an affiliate of San Diego-based Pacifica Cos.
According to Mark Gleiberman, MGPG's president, the Temecula purchase was “a continuation of our strategy to take advantage of record low long-term interest rates to generate outstanding cash-on-cash returns for our investors with high-quality properties in secondary markets.”
The acquisition was financed with a $30.85-million, 10-year, fixed-rate mortgage from KeyBank, with funding provided by Fannie Mae. The seller was represented by Paul Runkle of CBRE.
Built in 1988, that property consists entirely of two- and three-bedroom units and features extensive common area amenities and park-like grounds. Sage Canyon is a short walk from the Temecula Town Center shopping mall, the YMCA, and local sports parks and other recreational amenities.
Pacific Place Apartments was leased up prior to the sale to MGPG, according to a prepared statement. Built in 2009 as condominiums, the five-story property features luxury appointments in one- and two-bedroom flats and townhomes with expansive San Francisco Bay views from many units and the roof-top deck. Three commercial spaces in the building totaling more than 11,000 square feet were vacant at the time of purchase.
The acquisition was financed with a $15.1-million, 10-year, fixed-rate mortgage from CW Capital, with funding provided by Freddie Mac. The seller was represented by Craig Chiappone at Apartment Realty Advisors.
Gleiberman says in a prepared statement that this particular acquisition "is a solid apartment investment that can yield a competitive current dividend to our investors and a project with opportunistic yield potential if the commercial spaces lease up or the condo market comes back strong."
MGPG plans to make improvements to both properties' exteriors and common areas to upgrade their curb appeal and improve the living experience for residents.
Since December 2010, MGPG has completed 10 apartment acquisitions totaling 2,200 units at a value of $300 million. MGPG anticipates closing an additional $200 million in acquisitions within the next 12 months.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
