MG Properties Snags $134M San Diego-Area Community
- Jun 21, 2017
MG Properties Group has acquired the Alexan Melrose Apartments, a 410-unit community in the northern San Diego suburb of Vista, Calif., free and clear of existing debt. HFF’s Hunter Combs and Sean Deasy marketed the Class A property exclusively on behalf of Trammell Crow Residential and its joint venture partner. The $134 million acquisition was financed with an $85 million 10-year, fixed-rate Freddie Mac loan arranged by Bill Chiles and Scott Peterson of CBRE. MG Properties Group plans to rebrand the property as Preserve at Melrose Apartments.
Located at 1401 North Melrose Drive, on some 20 acres, the three-story property was completed in 2015. It was 97 percent occupied at the time of the transaction. The one-, two- and three-bedroom units average 985 square feet and feature quartz countertops, European-style cabinetry, stainless steel appliances and hardwood-style flooring. Community amenities include a pool and spa with cabanas, fire pit and grills, a fitness facility with children entertainment suite, a lounge with kitchen, billiards and gaming system, a clubhouse, dog park and outdoor tot lot.
Gateway to employment hubs
The asset is about seven miles from the coast and close to two grocery stores, downtown Vista Village and Del Oro Marketplace. The community is adjacent to the new Melrose Drive Sprinter light-rail stop and close to state routes 76 and 78 and interstates 15 and 5, providing a gateway to job corridors throughout North County San Diego. The main employment hubs, Oceanside and Vista, Calif., offer around 30,000 highly skilled jobs in industries such as life science, pharmaceuticals, action sports and information and communication technologies, according to Combs.
This is the company’s second San Diego County acquisition in the past six months, bringing its total portfolio to 4,150 units at an approximate $730 million combined purchase price. MG Properties is targeting further acquisitions in Arizona, California, Colorado, Nevada, Oregon and Washington.
Image courtesy of MG Properties Group