PRG and MG Properties Buy $53m Apartment Community
Purchased on behalf of a PRG institutional real estate fund, the 402-unit property built in 1968 was extensively remodeled over the last decade and offers high-end amenities including tennis and basketball courts, fitness center, movie room and clubhouse.
The purchase was financed with assumable tax-exempt bond financing, and 20 percent of apartments are reserved for households making 50 percent or less than the area median income.
Justin Smith, senior vice president of MGPG, said the acquisition also meets MG Properties Groupâ€™s strategy of buying institutional-quality assets in recovering markets that generate attractive yields.
PRG continues to actively invest in value-added multifamily properties and to pursue joint-venture development of new multifamily units across Southern California and in the tri-state region of New York, New Jersey and Connecticut, tapping $400m in discretionary institutional fund capital targeted for those areas.
Alex Saunders, managing director of PRG, said: â€œCrystal View is a great fit for our investment strategy - value-oriented rentals for the middle-market workforce, in an ideal location close to major freeways and some of the regionâ€™s biggest employers, including Disneyland and the University of California Irvine Medical Center.
â€œPRG and its principals have more than 30 yearsâ€™ experience in owning and operating market-rate and affordable housing. This enables PRG to structure market-rate multifamily transactions that may be encumbered with regulatory agreements and to manage mixed-income tenancies.â€
Will the acquisition benefit the firms?
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