San Diego-based MG Properties Group (MGPG), a private real estate investor and operator, in partnership with equity provider Rockwood Capital, has acquired the Terracina Apartments at 3303 S. Archibald Ave. in Ontario, CA for $95 million, or about $129,000 per unit, from Archstone.
The 736-unit, 673,280-square-foot multifamily community was built in 1989 on 21 acres in the Airport Area submarket of San Bernardino County. It is located at the intersection with Riverside Dr. near the I-15 and Hwy 60. The unit mix includes 288 one-bedroom and 448 two-bedroom apartments with asking rents between $889 and $1,269 per month. At the time of sale the asset was 95 percent occupied.
The property features two large common areas, a fitness center, pool, tennis courts and scenic waterways. It is within walking distance of a Ralphs grocery store and Rite Aid pharmacy, just minutes from a host of retail amenities and large employment centers.
MGPG will invest in Terracina's common areas, grounds and buildings to update and improve the living experience for the residents. Interior renovations will be completed on some units to provide a variety of finish levels for perspective tenants to choose from.
"We have been invested in the Inland Empire for more than a decade and believe in its economic potential to outpace much of California during the next decade. We expect Terracina to benefit from renewed job growth driven by strengthening economic performance, an effect that we are already beginning to see in our regional portfolio," said Justin Smith, senior vice president of investments at MGPG.
Since December 2010 the firm has completed 17 apartment acquisitions totaling 4,421 units valued at more than $500 million, bringing its portfolio to 82 communities with 14,500 units representing more than $1.4 billion in total value. It anticipates closing another $200 million in the next 12 months.
Bryan Frazier of Walker & Dunlop secured mortgage financing for the buyer in the way of two separate, fixed-rate loans from Fannie Mae.
The previously announced sale is part of Archstone's attempt to lighten its debt load by shedding numerous properties from its famed nation-wide multifamily portfolio. Read more about the new Archstone, HERE
Greg Harris and Kevin Green of Institutional Property Advisors represented the buyer in the sale. Ed Rosen and John Chu of Cushman & Wakefield represented the seller.
Please see CoStar COMPS #2670720 for additional information on this transaction.