MG Properties Acquires 770 Units in California
- Apr 18, 2014
San Diego, Calif.—MG Properties Group has acquired four properties in California that total 770 units. The total acquisition cost was $80, and the strategy is one bent on a value-add play, according to Mark Gleiberman, president of MG Properties Group.
“As active value-add operators with a long-term investment horizon, each of these acquisitions has a unique fit within our existing portfolio and they are good examples of the types of compelling investment opportunities we are seeking in today’s market,” he says.
The four acquisitions include:
- Stoneridge in Upland, Calif.—Built in 1973 an 1976, this apartment community was acquired from an affiliate of Sares Regis. MG plans to invest more than $2 million in improvements. The acquisition was financed with a $27.3 million 10-year fixed-rate mortgage loan from an affiliate of Guggenheim Partners arranged by George Elkins Mortgage Banking Co.
- Terramonte at La Verne in La Verne, Calif.—A 48-unit community that was built in 1985. Previously known as the Falcon Street Apartments, MG will operate it jointly with their nearby Terramonte Apartments. MG plans to invest $10,000 per unit in improvements. It was acquired for $7.7 million from Sussex Capital Group.
- Sterling Village in Vallejo, Calif.—A 2006-built community with 186-units. The transaction was financed with a $19.8 million 10-year fixed-rate mortgage provided by Fannie Mae and arranged by Key Bank Real Estate Capital.
- The Marquee North Hollywood (L.A.)—A 1965-built asset with 236 units. MG picked up this asset for $27.5 million from Cirrus Asset Management Inc.
Since December 2010, MG Properties Group has completed 21 apartment acquisitions totaling more than 5,190 units at a value of over $630 million. The firm anticipates closing an additional $250 million in acquisitions within the next 12 months.
Beech Street closes $9.1M for Colorado refinance
Longmont, Colo.—Beech Street Capital has provided a $9.1 million Freddie Mac CME loan to refinance Grandview Meadows Phase III, a 96-unit garden-style community located in Longmont, Colo. The transaction was originated by Chuck Christensen, Beech Street’s senior vice president of originations based in its Newport Beach, California office. M. Timm Development Inc., the sponsor, is a fully integrated real estate development company founded in 1984.
“We believed that going to Freddie Mac would be a win-win proposition for all concerned,” Christensen says. “The property’s proximity to both Denver and Boulder, Timm’s long experience in the market and its commitment to its portfolio as both manager and owner made it an attractive addition to Freddie Mac’s portfolio.”
Beech Street delivered a 10-year fixed rate loan with three years of interest only at a 75 percent LTV.
Essex Realty brokers sale of 32-unit courtyard building in Chicago
Chicago—Essex Realty Group Inc. announced the recent sale 7381 N. Damen Ave., a 32 unit courtyard building located in Chicago’s Rogers Park neighborhood. The property is situated on the northwest corner of Damen and Fargo Avenues.
The property was significantly renovated including the individual units, kitchens, bathrooms and common areas. In addition, various amenities were added to the property including space built out for future use as a gym and a three-room office with a full kitchen and bathroom.