MG Properties Group Closes Two California Acquisitions Totaling $44.5 Million
SAN DIEGO, Jan. 22, 2013 /PRNewswire/ -- MG Properties Group (MGPG), a private, San Diego-based real estate investor and operator, announced today the acquisition of Terramonte Apartments, a 138-unit multi-family property in Pomona, CA, for $19.25 million, and Waterstone Apartments, a 156-unit multi-family property in Tracy, CA, for $25.25 million.
Terramonte was sold by a San Diego family represented by Margie Malloy of Hendricks & Partners. Waterstone was sold by an affiliate of Fairfield Residential that was represented by Sal Saglimbeni of Marcus & Millichap.
Built in 1963, Terramonte is a desirable value-add investment in a higher-income area of east Los Angeles County. The property is situated near the high-traffic Foothill Boulevard and adjacent to the community of La Verne and within the Claremont School District. The classic low-density community features single-story buildings, townhomes and two swimming pools. Terramonte residents benefit from La Verne and Claremont's high quality of life, convenient amenities, and top-tier medical and university campuses. MGPG plans over $2.5-million of renovations to the community, significantly upgrading unit interiors. The acquisition was financed with a short-term bridge loan from Key Bank, represented by Andrew Lucca. Rob Prouty at Key Bank is originating the permanent take-out financing, which is expected to be closed in early 2013.
Waterstone is a luxury apartment community completed in 2007 by Fairfield Residential. It is the only market-rate, luxury rental property in Tracy built since 2000. The community attracts residents seeking price relief from the nearby San Francisco East Bay markets of Livermore and Pleasanton. Tracy is a growing market linked to the East Bay and a local economy that draws from its intermodal transportation infrastructure and a location that is 60 to 70 miles from the Silicon Valley, San Francisco, Oakland and Sacramento. The acquisition was financed with a Fannie Mae loan originated by Bryan Frazier of Walker & Dunlop.Mark Gleiberman, MGPG's President, describes the acquisitions as "a continuation of a very successful 2012 raising private capital for apartment investment throughout the West Coast. We are very pleased that we exceeded our goal of $200 million in new investments by closing on $240 million of acquisitions during the year, all funded with private equity sources including 1031 exchange capital, joint ventures with ultra-high net worth families and traditional syndications. Adding over 2,300 units to our portfolio through acquisitions will allow us to expand the capabilities of our integrated management teams to position us for future growth." Rich Gelbart, MGPG's Vice President of Investor Relations, notes, "Our private capital investor pool is ready for an active 2013 that meets or exceeds 2012. Value-add properties that are core to the history of MGPG and the current yield on secondary-market driven investments are reasons why our partners look to invest with us." MG Properties Group ( www.mgproperties.com) is a privately owned West Coast real estate owner and operator specializing in multi-housing assets. Over the last 20 years MGPG has acquired 81 communities totaling over 13,700 units, representing more than $1.4 billion in total asset value. The company's current ownership portfolio includes 50 properties totaling over 9,100 units in California, Washington, Arizona and Nevada. The firm also third-pay manages over 700 units for select clients. MGPG employs 300 professionals with in-house expertise in acquisitions and underwriting as well as asset, property, construction and investment management. Contact:
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV