SAN DIEGO, CA - MG Properties Group (MGPG), a private, San Diego-based real estate investor and operator, has announced the acquisition of multi-family properties in Temecula and Daly City, Calif.
MGPG has purchased Sage Canyon Apartments, a 344-unit multi-family property in downtown Temecula, Calif., for $38 million. The seller was the Bascom Group, LLC, based in Irvine, CA.
Built in 1988, the property consists entirely of two- and three-bedroom units and features extensive common area amenities and park-like grounds. Sage Canyon is a short walk from the Temecula Town Center shopping mall, the YMCA, and local sports parks and other recreational amenities. Temecula Elementary School is steps away across Moraga Road, and other Temecula schools are within easy walking distance. Sage Canyon is located near the I-15 freeway corridor, offering quick access to employment centers in San Diego, Riverside and Orange counties.
The acquisition was financed with a $30.85-million, 10-year, fixed-rate mortgage from KeyBank, with funding provided by Fannie Mae. The seller was represented by Paul Runkle of CBRE.
Mark Gleiberman, MGPG's President, describes the acquisition as "a continuation of our strategy to take advantage of record low long-term interest rates to generate outstanding cash-on-cash returns for our investors with high-quality properties in secondary markets."
The company also has acquired Pacific Place Apartments, a 72-unit, mixed-use, multi-family and retail property in Daly City, Calif., for $20.35 million. The seller was an affiliate of Pacifica Companies, an active, privately held investment group based out of San Diego. Pacifica Companies purchased the property and leased up the apartments prior to the sale to MGPG.
Built in 2009 as condominiums, the five-story property features luxury appointments in one- and two-bedroom flats and townhomes with expansive San Francisco Bay views from many units and the roof-top deck. Three commercial spaces in the building totaling over 11,000 SF were vacant at the time of purchase. The property offers secure garage parking for all residents. Pacific Place is located in an emerging Daly City location that provides residents with easy access to employment in the city of San Francisco or throughout the Peninsula via car or public transit.
The acquisition was financed with a $15.1-million, 10-year, fixed-rate mortgage from CW Capital, with funding provided by Freddie Mac. The seller was represented by Craig Chiappone at Apartment Realty Advisors.
Gleiberman said the acquisition "is a solid apartment investment that can yield a competitive current dividend to our investors and a project with opportunistic yield potential if the commercial spaces lease up or the condo market comes back strong."
MGPG plans to make improvements to both properties' exteriors and common areas to upgrade their curb appeal and improve the living experience for residents.
Since December 2010, MGPG has completed 10 apartment acquisitions totaling 2,200 units at a value of $300 million. MGPG anticipates closing an additional $200 million in acquisitions within the next 12 months.
MG Properties Group is a privately owned West Coast real estate owner and operator specializing in multi-housing assets. Over the last 20 years MGPG has acquired 76 communities totaling nearly 12,500 units, representing more than $1.1 billion in total asset value. The company's current portfolio includes over 8,000 units in California, Washington, Arizona and Nevada. MGPG employs 250 professionals with in-house expertise in acquisitions and underwriting as well as asset, property, construction and investment management.