TEMECULA, CA—GlobeSt.com has exclusively learned that San Diego-based MG Properties Group has purchased the Tuscany Ridge Apartments in Temecula, CA for $39 million. According to Rob Singh, who joined the firm last year as CIO as GlobeSt.com reported, “Due to its high quality modern design and construction, Tuscany Ridge is an ideal candidate for a value-add repositioning strategy.”
Singh pointed out that “Given the opportunity for growth in the Inland Empire and its proximity to our existing portfolio, this is an excellent strategic fit for us.”
Paul Kaseburg, MG Properties Group VP of investments, tells GlobeSt.com that “The Inland Empire's employment recovery has trailed the rest of Southern California, priming it for growth in the coming years. Temecula in particular is well positioned with access to both Inland Empire and San Diego job drivers, and the excellent local quality of life makes it an ideal residential destination,” he says.
“The property consists of 220 luxury apartments built in 1999. Units include nine-foot ceilings, full-sized washers and dryers, and a mix of well-designed 1, 2, and 3-bedroom floor plans. Tuscany Ridge is centrally located in Temecula and is within walking distance of restaurants, schools, retail, and major employers.
The property is adjacent to the Sage Canyon Apartments, also owned by MG Properties Group. As GlobeSt.com reported back in 2012, MGPG purchased Sage Canyon Apartments, a 344-unit multifamily property in downtown Temecula for $38 million from the Bascom Group LLC, based in Irvine, CA. At the time, one MG Properties' source said the 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.”
For the Tuscany Ridge acquisition, the company plans to invest over $3.3 million in capital improvements to the property, enhancing common area amenities, exteriors and landscaping, and renovating unit interiors.
The seller was an institutional investor. The deal was financed with a 10-year fixed-rate mortgage from Fannie Mae, arranged by Walker & Dunlop.
Tuscany Ridge marks MG Properties Group's fifth acquisition in 2014. The company also acquired California properties in Vallejo, Los Angeles, and Napa, and one property in Tempe, Arizona. The five acquisitions totaled more than 1,000 units and nearly $150,000,000 in combined purchase price. Washington, Oregon, Nevada, and Colorado are also target acquisition markets for the company.
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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.
