Joint Venture Takes on 350-Unit Apartment Community in CA
- Jan 14, 2016
Hacienda Heights, Calif.—Intercontinental Real Estate Corporation and MG Properties Group have partnered on the acquisition of Carmel Hacienda Heights Apartments, a 350-unit apartment community in Hacienda Heights, Calif.
The acquisition was financed with a 10-year fixed-rate mortgage from Freddie Mac, arranged by Brian Eisendrath at CBRE.
“The property’s prime location made this an ideal acquisition for our existing portfolio,” Jessica Levin, Intercontinental’s director, acquisitions, based in Los Angeles, told MHN. “It is located in a desirable residential neighborhood that is surrounded by a broad range of employment drivers. Our existing regional portfolio also creates operational efficiencies, which provided us with a thorough understanding of this unique property and submarket.”
The joint venture will rebrand the property as The Hills at Hacienda Heights, and plan to execute an ambitious renovation program.
Located at 2401 S. Hacienda Blvd., property amenities include an expansive pool and spa, fitness center, and a community room that provides an opportunity for residents to gather and socialize.
“We have a multi-year renovation plan in place that will support our long-term investment strategy for this property,” Levin said. “This integrated renovation plan will include improvements to the apartment community’s interior and exterior, including upgrades to the unit interiors and common areas, as well as addressing deferred maintenance items.”
Hacienda Heights is a central location with convenient access to downtown Los Angeles, Orange County and Inland Empire job corridors.
Since 1959, Intercontinental has managed, developed, and owned more than $10 billion in real estate property. Today, Intercontinental manages a portfolio in excess of $4 billion for its clients.
“This acquisition exemplifies our strategy to acquire multifamily assets in core-adjacent markets,” Levin said. “We continue to seek markets that demonstrate economic growth, but that are also not overexposed to risk from competition by new developments. We seek stable properties with compelling long-term demand drivers.”
The buyers represented themselves in the transaction. The seller was represented by Sean Deasy and Mark Petersen at HFF.