Napa apartments part of $50M deal

[caption id="attachment_102383" align="aligncenter" width="500"] The 72-unit Bella Vista Apartments was acquired in November 2014 as part of a $50 million deal for properties in California and Arizona.[/caption]

A 72-unit apartment complex in Napa was part of a $50 million multifamily-property acquisition in California and Arizona.

MG Properties Group, a private San Diego-based real estate investor and operator, acquired the 376-unit Garden Grove Apartments in Tempe, Ariz., and the Bella Vista Apartments in Napa.

“Both acquisitions leverage our existing management platform, creating operational efficiencies and allowing us to scale our portfolio in high-quality markets with strong growth potential” according to Mark Gleiberman, MG Properties Group’s president.

Built in 1972, Bella Vista Apartments is a well-maintained and conveniently located property in central Napa.  MG Properties Group plans to invest approximately $500,000 in capital improvements. The property’s central location is one block from the Queen of the Valley Medical Center, near the CA-29 highway, and convenient to commercial and retail centers.

Bella Vista was purchased for $14.075 million from Trinity Real Estate. The acquisition was financed with a 10-year fixed-rate mortgage from Fannie Mae, arranged by Key Bank.

Built in 1988, Garden Grove Apartments is an upgraded, conveniently located infill property in south Tempe, with easy access to the I-10 freeway and surrounded by a variety of retail amenities.  MG Properties Group plans to invest nearly $1.5 million in capital improvements and plans to enhance the property’s common area amenities to improve the  ambiance for current and prospective residents, including performing landscaping improvements and upgrading the fitness facility and pools. The improvements will capitalize on the strong market conditions in Phoenix.

Garden Grove Apartments was purchased for $35.6 million from MetLife, Inc. The acquisition was financed with a 10-year fixed-rate mortgage from Fannie Mae, arranged by CBRE. 

According to Rob Singh, MG Properties Group Chief Investment Officer, “both properties are in strong sub-markets and therefore should benefit from long-term rental rate growth.”

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 MG Properties Group has acquired 86 communities with its private investors and institutional joint venture partners totaling over 15,000 units, representing more than $1.4 billion in total asset value. The company’s current portfolio includes more than 10,000 units in California, Washington, Arizona and Nevada. MG Properties Group employs 300 professionals with in-house expertise in acquisitions and underwriting as well as asset, property, construction and investment management. Since December 2010, MG Properties Group has completed 23 apartment acquisitions totaling over 5,600 units at a value of over $680 million.

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