SAN DIEGO—GlobeSt.com has exclusively learned that MG Properties Group, a private San Diego-based real estate investor and operator, has acquired four multifamily properties in California totaling 770 units.
“These acquisitions are an extension of the company's strategy of growth throughout the western US in markets where it has a long operating history and benefits from efficiencies of scale due to its existing portfolio,” says 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.
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.
The four acquisitions include:
Stoneridge:
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 Co.
Terramonte at La Verne:
The 48-unit property was built in 1985 and 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 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 $7.7 million 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 $5.54-million bridge loan from Key Bank arranged by Andrew Lucca.
Sterling Village:
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 $19.83 million 10-year fixed-rate mortgage provided by Fannie Mae and arranged by Rob Prouty and Andrew Lucca at Key Bank Real Estate Capital.
The Marquee:
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 $27.5 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 Group's private capital group or in partnership with family offices.
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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.
