SAN DIEGO, CA - MG Properties Group, a private, San Diego
-based real estate investor and operator, announced today the acquisition of a four-property portfolio in Lancaster
, Calif. The properties – Cordova Park (416 units), Granada Villas (320 units), Sienna Heights (314 units), and Woodlands West (140 units) – were purchased for $91.75 million
from a private seller. Greg Harris
, Ron Harris
, Kevin Green
and Joseph Smolen
of Institutional Property Advisors (IPA) represented the seller. MGPG represented itself in the transaction.
Mark Gleiberman, President of MGPG, called the transaction, "a unique opportunity to leverage both MGPG's operational expertise and historically low long-term financing rates to generate high cash-on-cash returns for our investors based on current operations." The acquisitions were financed separately with $75.60 million in 10-year, fixed-rate debt provided by Rob Prouty at KeyBank Real Estate Capital and Fannie Mae.
The properties, built between 1984 and 1990, are located along the I-14 freeway, within close proximity of retail amenities, public recreation facilities, and Lancaster's recently redeveloped BLVD district, featuring restaurants, retail, and cinemas. Each property offers a unique unit mix and different locational attributes to appeal to a wide variety of residents.
Justin Smith, MGPG's Senior Vice President of Investments, called the purchase, "an extension of our strategy of acquiring high-quality assets in secondary markets. We see this as a long-term operating business and look forward to applying our management expertise to improve operations and benefit from regional economic growth."
MGPG plans to improve residents' living experiences and decrease turnover by addressing deferred maintenance items and performing improvements to the properties' exteriors and common areas. The company also will focus on staff training at its corporate "MG University" and implementation of systems improvements, including revenue management, to enhance operational efficiency.
Since December 2010, MGPG has completed 14 multifamily property acquisitions totaling 3,391 units at a value of more than $380 million. MGPG anticipates closing 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 80 communities totaling nearly 13,700 units.