MG Properties Buys Oregon Apartments for Nearly $58M
- Mar 30, 2016
Portland, Ore.—MG Properties Group has acquired the Russellville Commons Apartments in Portland, Ore., for $57.8 million. The San Diego-based MG Properties bought the 283-unit property from the Reliant Group, a San Francisco-based holding company.
Located in Portland’s Gateway District and built in 1999, Russell Commons’ units average 875 square feet and include both townhome- and flat-configuration floor plans. Common amenities include a resort-style pool and spa, modern fitness center with a yoga room, and a resident lounge and business center.
Portland has a tight apartment market. According to Kidder Mathews’ 3Q 2015 report on the market (the most recent one available), the overall apartment vacancy rate in greater Portland was 3.1 percent, compared with 3.7 percent a year earlier.
The deal marks MG Properties’ first venture into Oregon. According to Mark Gleiberman, MG Properties group CEO, the acquisition represents an expansion of the company’s portfolio in the Pacific Northwest, and is “a continuation of our strategy to acquire assets with the potential for value-add improvements.”
The Reliant Group was represented in the transaction by Cody Hagerman and Tyler Johnson at HFO Investment Real Estate. The acquisition was financed with a 10-year fixed-rate mortgage provided by PNC Bank N.A., member of The PNC Financial Services Group Inc.