TODAY’S DEALS: MG Properties Group Acquires $23.3M Seattle Community

MG Properties Group acquires a 146-unit community in Seattle; Johnson Capital arranges $13 million for two properties in Orange County, Calif.; and CBRE arranges the $54.5 million sale and acquisition financing of a large multifamily property in Minnesota.

Park at Northgate

Seattle—San Diego-based investor and operator MG Properties Group has purchased The Park at Northgate, a 146-unit property located in Seattle, Wash., for $23.3 million. The property was partially renovated at the time of sale, and MGPG intends to finish the upgrades and an anticipated cost of $2 million. The asset is currently 90 percent occupied. The property was sold by Triad Villa Roma LLC, who was represented by Pinnacle.

“This acquisition is consistent with our strategy or purchasing well-priced assets with strong operational cash flow and the potential to add value through renovation,” says Justin Smith, senior vice president of investments at MGPG.

The acquisition was funded with a $17.4 million loan from Guggenheim Commercial Real Estate and Pillar Multifamily LLC, which was arranged by George Elkin Mortgage Banking. The remaining funds came from MGPG’s private capital group, a pool of high-net-worth investors located primarily in the San Diego region.

“We are aggressively pursuing acquisitions of assets with a similar operation profile throughout the western states,” Smith added, saying that MG Properties Group has acquired 1,138 units with a value of $150 million in the past year. The firm plans on closing an additional $200 million in acquisitions over the next 12 months.

Johnson Capital Arranges $13M for Two Orange County Communities

Orange and Anaheim, Calif.—Johnson Capital has arranged $13 million in loans for two properties in Orange County, Calif. The firm’s Irvine office arranged $7.9 million for Orange Park Heights, an 87-unit active-seniors community located in Orange, Calif. That transaction was led by Ryan Chapman, vice president, and Amos Smith, senior vice president.

The three-story, elevator-served community was built in 1999. The 10-year, non-recourse, fixed-rate loan was provided by Freddie Mac through Prudential Johnson Apartment Capital Express (PJACE), a Freddie Mac Seller Servicer.

“Johnson Capital represented both Freddie Mac and FNMA in the process, which Freddie Mac ultimately won with very competitive pricing,” says Smith. “And I have to give credit to John Loshbaugh, a director with Freddie Mac, who was instrumental in insuring the process went smoothly and the loan was closed in 45 days.”

Johnson Capital’s Phoenix, Ariz., office arranged $5.3 million for Casa Fortin, an 88-unit apartment community located in Anaheim, Calif. David Susank, senior vice president, arranged the transaction. The two-story garden-style building was built in the late 1960s. Community amenities include two swimming pools and laundry facilities. The loan was used to refinance a maturing Fannie Mae Loan.

CBRE arranges $54.5M sale and acquisition financing of large property

Park Place

Plymouth, Minn.–CBRE Capital Markets announced the arrangement of the sale and acquisition financing for the Park Place Apartments, a 500-unit property located in Plymouth, Minn.

Abe Appert and Keith Collins of CBRE’s Minneapolis office and Malcolm McComb of CBRE’s Atlanta office represented the owner, Invesco, on the sale of the asset. The buyer, an affiliate of Greystar Real Estate Partners, was represented by Kevin Kaberna, managing director of Investments for the Central and Western U.S.

Greystar acquired the property in late August 2011 for approximately $54.5 million. Park Place is the largest multifamily sale in the Minneapolis-St. Paul market since 2006 and represents Greystar’s first acquisition in the area.

CBRE Capital Markets successfully secured a $39.5 million loan for Greystar through its Fannie Mae DUS program. Acquisition financing was originated by Holly Minter, executive vice president, and Kale Kibbe, vice president, located in CBRE’s Houston headquarter office, in partnership with Joel Torborg and Murray Kornberg in CBRE’s Minneapolis office.

The financing was obtained through Fannie Mae’s new Adjustable Rate Mortgage 7-6TM loan program which offers low-cost, LIBOR-based floating-rate financing, a built-in interest rate cap for the life of the loan, 1 percent prepayment fee after the first 12 months, and the ability to convert to fixed-rate financing. The financing is fully assumable and offers supplemental loan proceeds.

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