MG Properties Buys Inland Empire Apartment Community for $137M
The investor called the Inland Empire a “top performing” market that will benefit from post-pandemic trends.
MG Properties Group has expanded its apartment portfolio in the Inland Empire with the acquisition of Victoria Arbors Apartment Homes for $137.6 million. The investor purchased the 319-unit garden-style apartment property from Sares Regis Group’s Sares Regis Multifamily Funds.
The property is located near the Victoria Gardens Mall and has a walk score of 84. Located in Rancho Cucamonga, the property is located near job centers, including healthcare and distribution centers like QVC and Amazon.
The Inland Empire is growing rapidly, thanks in large part to a booming industrial market that has brought jobs and economic growth to the region. MG Properties Group founder and CEO Mark Gleiberman called the Inland Empire a “top performing market” and said the Victoria Arbors area is positioned to benefit from post-pandemic trends.
Victoria Arbors Apartment Homes is MG Properties’ tenth acquisition in the region. Earlier this year, it purchased the 352-unit District at Grand Terrace in Colton for $88 million from Tower 16. The property features one-, two, and three-bedroom units, which average 872 square feet. It has four swimming pools, a fitness center, a pet park and playgrounds.
Tower 16 is also bullish on the market. The investor has plans to build a 2,000-unit apartment portfolio in the region over the next several years. While it sold the Colton asset earlier this year, it also acquired 1333 Canyon and Reche Ridge Apartments, a two-property 214-unit portfolio in Colton, California, for $41 million as part of the strategy.
The data supports the fervency. A report from Yardi earlier this year showed that the Inland Empire has .5% month-over-month apartment rent growth in March. The market was behind only Tampa, which had .9% rent growth, and it was on par with Phoenix and Orange County, both of which had .5% rent growth as well.
Berkadia’s Tom Moran, Jr., Derrek Ostrzyzek, Rachel Parsons and Mike Murphy represented Sares Regis in the deal. MG Properties purchased the property with a $75 million mortgage provided by Nuveen Real Estate and arranged by Charles Christensen of Berkadia.