Alvista at the Bridge - Hayward, CA
February 08, 2011
Phoenix Realty Group buys $53 million apts in Orange County, CA
- Strategically located in Garden Grove within three miles of 60,000 jobs
LOS ANGELES — Phoenix Realty Group (PRG) and MG Properties Group (MGPG) have announced their acquisition of Crystal View, a $53-million apartment community in Garden Grove, Calif., that offers quality, market-rate and affordable units to workers at the area’s major theme parks, hotels, medical centers and sporting venues.
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.
“Crystal 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 region’s biggest employers, including Disneyland and the University of California Irvine Medical Center,” explained Alex Saunders, PRG managing director.
The purchase was financed with assumable tax-exempt bond financing, and 20 percent of apartments are reserved for households making 50% or less than the area median income. “PRG and its principals have more than 30 years’ experience in owning and operating market-rate and affordable housing,” said Saunders. “This enables PRG to structure market-rate multifamily transactions that may be encumbered with regulatory agreements and to manage mixed-income tenancies.”
Justin Smith, MGPG senior vice president, said the acquisition also meets MG Properties Group’s strategy of buying institutional-quality assets in recovering markets that generate attractive yields. “Our strong operating platform combined with Phoenix Realty Group’s experience and resources make this an excellent partnership to add to our existing market-rate and affordable housing properties,” said Smith.
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 $400 million in discretionary institutional fund capital targeted for those areas. In 2010 alone, the firm acquired more than 2,100 apartment units nationally, valued at $250 million. The firm currently owns and manages market-rate apartment properties and affordable housing in major markets across the U.S.
Phoenix Realty Group is a national real estate investment manager and direct owner providing capital and expertise for the development and operation of rental and for-sale residential properties, low-income tax-credit housing, and mixed-use and commercial projects in urban areas across the United States. The vertically integrated firm maintains extensive fund management, underwriting, development, construction management and asset management capabilities. PRG has attracted investments from America’s leading public pension funds, banks and insurance companies, with discretionary funds that invest in opportunistic and value-added real estate ventures. The firm currently manages investments representing $2 billion in real estate development and acquisitions.
MG Properties Group is a privately owned West Coast real estate owner and operator specializing in multi housing assets. Founded in 1992, MGPG has acquired 69 communities totaling over 10,900 units, representing more than $1.3 billion in total asset value. The company’s current portfolio includes 8,000 units in California, Washington, and Arizona. MGPG employs 250 professionals with in-house expertise in acquisitions and underwriting, asset, property, construction, and investment management.
Editor’s Note: Click here for an image of the Crystal View Apartment Community.
Francie Murphy Associates
Francie Murphy, 858-350-5152