SAN DIEGO, CA - MG Properties Group (MGPG), a privately owned, San Diego-based real estate investor and operator, has announced the acquisition of The Park at Northgate, a $22.3-million apartment community in Seattle, Washington.
Mark Gleiberman, President of MGPG, said, "The Park at Northgate is located in a dynamic area of north Seattle and offers a strong value proposition for tenants seeking a high-quality residence in a middle-market price range." The Park at Northgate is located close to downtown Seattle and the University of Washington and is within walking distance of Northgate Mall and Northgate Transit Center.
"We were able to overcome some complex challenges in structuring the financing for the purchase and locked in long-term, fixed-rate financing at an attractive interest rate," Gleiberman added. The acquisition was financed with a $17,350,000 loan from Guggenheim Commercial Real Estate and Pillar Multifamily, LLC, arranged by George Elkins Mortgage Banking Company. The balance of the purchase price was provided by MGPG's Private Capital Group, a pool of high-net-worth investors located primarily in the San Diego region. The property was sold by Triad Villa Roma LLC, who was represented by Tim Campbell and Jeff Gilson of Pinnacle.
"We also benefit from the fact that MGPG has in-house construction and property management capabilities," said Gleiberman, "which provides us with real time information about operations and allows us to efficiently manage the renovation process to maximize investment returns."
The 146-unit property was partially renovated at the time of acquisition, and MGPG intends to finish the upgrades, which are anticipated to cost approximately $2.0 million. Renovations include additions to the living units such as wood-burning fireplaces and washers and dryers as well as exterior improvements to parking and landscaping. Available units are almost 90% occupied.
"This acquisition is consistent with our strategy of purchasing well-priced assets with strong operational cash flow and the potential to add value through renovation." said Justin Smith, MGPG Senior Vice President of Investments. "We are aggressively pursuing acquisitions of assets with a similar operational profile throughout the western states." Smith said MG Properties Group has acquired 1,138 units with a value of $150 million in the past year and anticipates closing on an additional $200 million in new 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 70 communities totaling over 11,500 units, representing more than $1.1 billion in total asset value. The company's current portfolio includes 7,700 units in California, Washington and Arizona. MGPG employs 250 professionals with in-house expertise in acquisitions and underwriting as well as asset, property, construction and investment management.