MG Properties Grabs Multifamily for $36M

PHOENIX—MG Properties Group, a San Diego-based real estate investor and operator, recently purchased the Trillium Papago Apartments in Phoenix for $36 million from Trillium Residential.

The property consists of 270 luxury apartments built in 2007.  The asset is located northeast of Phoenix Sky-Harbor Airport, providing access to multiple job corridors within the region. MGPG plans to rebrand the property as Ascent at Papago Park. The property features an array of common area amenities, including a resort-style pool and spa, modern fitness center, movie theater, and pool room. Units include nine-foot ceilings, full-sized washers and dryers, and a mix of one, two, and three-bedroom floor plans.

Paul Kaseburg, vice president, investments at MG Properties Group, tells GlobeSt.com, “We believe this submarket has great opportunity over the medium term due to its central location. The property's accessibility to the 202 loop makes it convenient for commuters and puts it within a 10 minute drive from multiple employment corridors, including Tempe, Sky Harbor, Downtown/Midtown, and Scottsdale. The property is five minutes from downtown Tempe, providing a wealth of dining and entertainment options for residents. Its proximity to Tempe is also feeding further growth in the area, with a number of office, hotel, and retail developments in the pipeline nearby. As long-term investors, we value this diversity of job drivers and potential for growth.” 

The acquisition was financed with a 10-year fixed-rate mortgage from Fannie Mae, arranged by CBRE. 

According to Mark Gleiberman, MG Properties Group CEO, “This acquisition reflects our continued belief in the long term growth potential of the Phoenix market.  The property's excellent design and central location position it well to benefit from further growth in the region.”

Trillium Papago marks MG Properties Group's fourth acquisition in the past six months.  The four acquisitions totaled approximately 700 units and $125 million in combined purchase price.  The company is targeting further acquisitions in Arizona, California, Colorado, Nevada, Oregon, and Washington.