MG Properties Group Expands Phoenix Portfolio With $75M Purchase
- Jun 22, 2021
Centra, a 223-unit community in Phoenix, has changed ownership. Fore Property sold the five-story building to MG Properties Group for $74.5 million. Cushman & Wakefield arranged the sale, which was financed with a $43.1 million loan originated by Key Bank and brokered by Brooks Benjamin.
Completed just last year, Centra is located at 3601 N. Central Ave., on nearly 2 acres, and features a mix of one- and two-bedroom units. The property is seeking LEED certification to the Silver level. Community amenities include a fitness center, clubhouse, swimming pool, spa and 351 covered parking spaces that can be used free of cost.
Arizona State University and the Phoenix Institute of Herbal Medicine & Acupuncture close to the property, which is located in a transit-oriented area roughly 3 miles from downtown Phoenix. St. Joseph’s Hospital & Medical Center is just southeast of Centra. Nearby employers include IBM, Dignity Health, ASU, Deloitte and Pinnacle West.
Following a quick lease-up, Centra is now 93.3 percent occupied. In 2018, the community became subject to a $30.9 million construction financing with a 4-year term provided by BOKF.
Cushman & Wakefield’s Phoenix Executive Managing Directors Steven Nicoluzakis and David Fogler led the transaction team for MG Properties Group’s 11th Arizona purchase.
San Diego-based MG Properties Group has a portfolio of $926 million, which has expanded with 13 assets or over 3,750 units over the last 12 months.
In January of this year, the company used a 10-year Fannie Mae acquisition loan to buy Andante Apartments in Phoenix. Three months later, MG Properties acquired The District at Grand Terrace in Colton, Calif., in a transaction brokered by Institutional Property Advisors.
The company plans to further expand throughout Washington, Texas, Oregon, Arizona, California, Colorado and Nevada.