MG Properties Buys 215 Apartment Units in OC
The San Diego-based investor has acquired The Herald Apartments, a 215-unit new construction building.
San Diego-based MG Properties has expanded its multifamily holdings in Orange County with the purchase of The Herald Apartments, a 215-unit new construction building, from Lyon Living. The sales price was not disclosed.
Located in Placentia, the Herald Apartments was built in 2021. It is a class-A building with a full host of amenities and strong fundamentals. Mark Peterson, Joseph Smolen, Geoff Boler and Jonathan Merhut of Eastdil Secured represented the seller in the transaction. Affiliates of Apollo Global Real Estate Management L.P. secured the acquisition financing, which was originated by Lee Redmond and Greg Stampley also of Eastdil Secured.
Orange County’s apartment market has performed will through the pandemic, with rent growth surfacing early last year. Orange County rents grew an average of 1.8% in, according to Yardi Matrix predicted in a report released Friday. Orange County rent growth took a dive with the start of the pandemic, but continues to outpace the nation, according to the study. Spurred by a continuation of new supply lagging demand, Orange County rents rose 0.3% on a trailing three-month basis through February, outperforming the 0.1% overall US rate, the study said. The county’s $2,164 average rent as of February was well above the $1,399 national norm.
As a result of the strong fundamentals, there have been several notable transactions in the last 12 months. In August, for example, The REMM Group added evRIA New Diamond Valley Apartment Homes, a 137-unit multifamily community in Hemet and Huntington Cove, a 135-unit community in Huntington Beach to their management portfolio. Then, earlier this month, Multifamily developer JPI sold a three-property apartment portfolio in Anaheim totaling 1,079 units. The portfolio includes Jefferson Rise, Jefferson Edge and REVO, which are located in Anaheim’s Platinum Triangle. JPI developed all three properties. MORE Residential acquired the portfolio. JPI developed Jefferson Rise and Jefferson Edge as part of a joint venture with equity partner Grand China Fund, a Beijing-based private equity real estate fund, and the firm partnered with MORE Residential to build REVO. This was JPI’s second development with MORE Residential.