Alvista Pembroke Landings - Pembroke Pines, FL
May 04, 2011
Phoenix Realty Group Acquires $21.5-Million REO Apartment Portfolio in Southern California’s Inland Empire
LOS ANGELES — Phoenix Realty Group (PRG) has acquired a portfolio of 432 apartment units in three properties in the cities of San Bernardino and Highland, Calif. The portfolio was purchased for $21.5 million from a lender that had taken back the assets in 2009 and embarked on an 18-month intensive management effort that brought occupancy up to 95%.
“A year ago, these properties were in poor shape due to low occupancies largely driven by poor management and a lack of maintenance,” explained Edward Ratinoff, PRG’s managing director of national acquisitions. “But aggressive management and capital improvements restored these properties into the type of middle-market, family-friendly apartments that our institutional real estate funds target. The improved conditions allowed us to obtain attractive financing from Freddie Mac,” he added.
Given the distressed history of the properties, the seller sought a buyer with a strong reputation for closing and the ability to purchase the entire portfolio, according to PRG managing director Alex Saunders.
The properties offer market-rate and government-subsidized units to renters employed throughout the Inland Empire by local employers such as Arrowhead Regional Medical Center, California State University San Bernardino and nearby community colleges.
Coastline Real Estate Advisors, which stabilized the properties’ operations over the past year, was maintained as the property management firm for Ascot Park (160 units in 25 two-story buildings) and Summit Place (80 units in 10 two-story buildings) in San Bernardino, and Park Heights (192 units in 15 two-story buildings) in Highland.
The seller was represented by Ron Harris and Alex Garcia of Marcus & Millichap, Los Angeles. PRG represented itself.