Largest SoCal Multifamily Acquisition Since 2013 Complete
- Apr 06, 2015
San Diego—Boston-based Intercontinental Real Estate Corporation and San Diego-based MG Properties Group have announced their acquisition of a 768-unit apartment community in Anaheim, the Madison Park Apartments. On the basis of the number of units, it is the single-largest property purchased in Southern California since 2013.
The resort-style community offers common-area amenities that include a pair of swimming pools, sports courts, an expansive fitness center and group exercise room, clubhouse, movie theater, banquet room and business center. The interiors of apartments have been newly refurbished to showcase a contemporary look and high-quality finishes. Select interiors and common areas will be renovated by the buyers.
Location is among the property’s chief attributes. It is situated near the I-5 freeway in West Anaheim, between Knott’s Berry Farm and Disneyland.
“We believe the Southern California market is well positioned for growth in the coming years, and Anaheim in particular will benefit from its diverse mix of economic drivers,” Paul Kaseburg, vice president, investments at MG Properties Group, told MHN. “We anticipate Madison Park will be a stable performer and a good fit for our long term hold strategy.”
The Orange County region, which offers favorable economic and real estate conditions, continues to outperform many other markets, according to Jessica Levin, based in the Los Angeles office of Intercontinental Real Estate Corporation. Madison Park offers convenient access to area employers and delivers a cost-effective alternative to the newest development properties in the area, she added.
Acquiring a property of this scale always presents unforeseen logistical challenges, particularly under a short transaction timeline, Kaseburg added.
“Tight coordination between our experienced internal due diligence team, trusted service providers, and organizations allowed us to complete our thorough property due diligence with a minimum of disruption to property operations, and quickly enough to manage the inevitable surprises,” he reported.
Kaseburg said Madison Park offers an excellent value for residents, and it includes a superior array of common area amenities and recently renovated units.
“We plan to make targeted upgrades to property common areas and interiors to further improve our resident experience while maintaining the property’s competitive position within the marketplace,” he added.
Madison Park Apartments was purchased from a private multifamily investment firm, which was represented by executive vice president Greg Harris and director Kevin Green of Institutional Property Advisors (IPA). The buyers represented themselves.
A 10-year fixed-rate mortgage from Fannie Mae, arranged by Brian Eisendrath of CBRE, financed the acquisition.
“Madison Park is an excellent addition to our portfolio, further expanding our scale in the Orange County region,” said Mark Gleiberman, MG Properties Group CEO. “We expect the property to have long-term stability and to benefit from the diverse regional job base and growth potential.”