MG Properties Group has made its 10th acquisition in the Inland Empire/Temecula Valley region with the purchase of Victoria Arbors Apartment Homes, a 319-unit garden-style multifamily community in Rancho Cucamonga, Calif. The property was bought from Sares Regis Group for $137.6 million.
The property was financed with a $75 million mortgage provided by Nuveen Real Estate and arranged by Charles Christensen of Berkadia. The seller, Sares Regis Multifamily Funds, was represented by Berkadia’s Tom Moran Jr., Derrek Ostrzyzek, Rachel Parsons and Mike Murphy as part of the organization’s newly formed Institutional Solutions power by Moran.
Sares Regis Group had owned the nearly 12-acre property since June 2017, when it acquired the apartment community for $93.9 million from AMLI Residential, according to Yardi Matrix data. AMLI Residential had purchased the asset in June 2006 from Fairfield Residential as part of a $149.2 million two-property portfolio transaction, Yardi Matrix reported.
Located at 7922 Day Creek Blvd., the apartment community is located across from the Victoria Gardens Mall and is also close to nearby retail and outdoor leisure activities. The property is also in close proximity to I-15 making it convenient for residents to get to Inland Empire employers including nearby healthcare and distribution centers like QVC and Amazon.
Previously known as AMLI at Victoria Arbors and Meritage at Victoria Arbors, the property was built in 2006 and consists of eight two- and three-story buildings. The apartments feature washers and dryers in all units, vaulted ceilings, above standard ceiling heights and fireplaces in select two-bedroom units. The apartments have one- and two-bedroom layouts ranging in size from 743 square feet to 1,218 square feet with an average of 1,009 square feet, according to Yardi Matrix. Rents range from $2,319 to $2,657 with an average of $2,444 with occupancy at approximately 94.4 percent, Yardi Matrix data showed.
The property has controlled access and monitored security. Other community amenities include a fitness center, business center, clubhouse, swimming pool and spa. Covered parking is available for an additional fee. Direct access garages are available for select units.
Mark Gleiberman, founder & CEO of MG Properties, said in a prepared statement Victoria Arbors is positioned to benefit from post-pandemic trends as a walkable suburban community with growing economic opportunities nearby. Noting the Inland Empire continues to be a top-performing market, Gleiberman said the purchase further expands the company’s Southern California holdings.
MG Properties now owns 10 properties in the region, including The District Apartment Homes, the 352-unit apartment community purchased in April for $88 million from Tower 16 Capital Partners. Located in Colton, Calif., the property was known as The District at Grand Terrace when MG Properties acquired it.
MG Properties has purchased 15 communities in the past year totaling more than 4,600 units and $1.39 billion in combined value. The company’s overall portfolio is comprised of 22,000 rental units across 73 communities valued at $5.6 billion.
In late June, the company acquired Centra, a 223-unit asset in Phoenix, from Fore Property for $75 million. It was MG Properties 11th multifamily acquisition in Arizona. In January, the company used a 10-year Fannie Mae acquisition loan to buy Adante Apartments, also in Phoenix, from Security Properties for $145.2 million. The company is targeting further acquisitions in Arizona, California, Washington, Oregon, Nevada, Utah, Colorado and Texas.