MG Properties Acquires Nevada Portfolio for $303M
Totaling more than 1,000 units, the portfolio comprises eight communities in Reno.
MG Properties has significantly bolstered its presence in the Reno, Nev., market after acquiring an eight-property portfolio totaling 1,077 units. The company acquired The ERGS Portfolio from local developers ERGS Inc. for $302.5 million, Kenneth Blomsterberg, senior managing director investments in Marcus & Millichap’s Reno office, told Multi-Housing News. Blomsterberg was joined by Marcus & Millichap’s Ryan Rife and Daniel Winrod in representing the seller, while also procuring the buyer.
The portfolio totals eight communities in Reno that were built between 1958 and 2021. The most recent community, North Peak Apartments, was completed in 2021 and offers 352 units in one-, two- and three-bedroom units. The next largest properties in the portfolio are the 352-unit Silver Lake Apartments and the 232-unit Sierra Sage Apartments, which both also offer one-, two- and three-bedroom units. The remainder of the portfolio includes the 47-unit Oak Manor, the 40-unit Vale Apartments, the 30-unit Peavine Peaks, the 16-unit Vale Townhomes and the eight-unit Angel Street Apartments.
Blomsterberg told MHN that the portfolio is 98 percent occupied and that the communities will undergo exterior and interior upgrades, with the exception of North Peak since it was recently completed.
Prior to The ERGS portfolio, MG Properties expanded its footprint in the Reno area with the acquisition of Parq Crossing in August. The company acquired the 288-unit community in Sparks, Nev., from the developer, Guardian Capital, in an off-market transaction. Overall in 2021, MG Properties had acquired more than $1.6 billion of multifamily assets, which notably included its entry into the Denver market.
MG Properties said it’s targeting a similar acquisition volume for 2022, continuing to focus on value-add, new construction or core-plus multifamily properties in the western U.S. More specifically, the company is looking for acquisitions in Washington, Oregon, California, Arizona, Nevada, Utah, Texas and Colorado.