MLG Capital Announces Investment in 2,769 Unit Multifamily Portfolio in Sunbelt Region

MLG Capital Announces Investment in 2,769 Unit Multifamily Portfolio in Sunbelt Region

BROOKFIELD, WI - MLG Capital, the premier investment manager in private real estate investments for Investment Advisors, Family Offices and High Net Worth Individuals across the U.S. since 1987, announced its most recent acquisition of a portfolio of ten multi-family assets containing ±2,700 units. The portfolio is located across three geographic locations within the burgeoning Southwest Sunbelt region, Houston, TX, Tulsa, OK and Oklahoma City, OK.

"MLG's purchase of the portfolio represents an exciting opportunity to acquire 10 assets of 'class B' multi-family at an attractive basis in locations that are in three fast-growing metropolitan regions of the Southwest with continued population growth, low unemployment, a strong corporate presence and high rankings for livability," said Ryan Mueller, Vice President of Acquisitions at MLG Capital. 

Timing for the purchase is ideal as the U.S. occupancy rate for apartments is ±96 %, which is the highest occupancy rate recorded since 2001. Since 2000, the US has averaged 1.25M new households created, further suggesting that demand is continuing to exceed supply. 

Market occupancy in Houston is ±93%, Oklahoma City is ±94% and Tulsa is ±94%. 

Purchase Highlights: 

The series of diversified private equity real estate funds and a co-investment entity, all managed by MLG Capital, acquired the transaction  

Diversification: The 10 asset portfolio consists of ±2,700 apartment units across 2 states and 3 major cities  

Great basis: The portfolio has a great acquisition basis vs. the cost of new construction in the marketplace  

A subsidiary of MLG Capital, Valiant Residential, will operate and manage the portfolio. Valiant Residential currently manages over 14,000 units and has managed assets in the Southwest sunbelt region for over 30 years. Valiant Residential brings an entrepreneurial management style, leveraging local relationships and employees to reduce operating expenses.

Since 1987 MLG Capital has acquired, holds, or has sold over $2.2B of private commercial real estate across the USA, consisting of over 22.3M commercial square feet which includes over 17,600 multi-family apartment units. All deals MLG Capital has exited, there has been an equity multiple of ±2.35x (For every $1 invested, MLG has produced $2.35 in total distributions).

Source: MLG Capital

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