Intercontinental, MG Buy Big in SoCal
- Apr 03, 2015
Intercontinental Real Estate Corp. and MG Properties Group are boosting their California holdings with the purchase of a 768-unit multi-family complex in Anaheim.
Intercontinental, a Boston-based investment advisor, and MG, a private San Diego-based real estate investor and operator, said that the acquisition of Madison Park Apartments marks the single largest multi-family property to change hands in Southern California since 2013. The purchase price was not disclosed.
“Madison Park is an excellent addition to our portfolio, further expanding our scale in the Orange County region,” Mark Gleiberman, MG’s CEO, said in a statement. “We expect the property to have long-term stability and to benefit from the diverse regional job base and growth potential.”
MG, which also owns the 403-unit Crystal View Apartments in Garden Grove, Calif., has bought five multi-family properties with 1,706 units for more than $258 million in the past six months. It is eyeing acquisitions as well as Arizona, Colorado, Nevada, Oregon and Washington as well as in California.
Greg Harris, an executive vice president at Institutional Property Advisors, and Kevin Green, a director at IPA, represented the unnamed seller, a private multi-family investment firm. Intercontinental and MG represented themselves. The acquisition was financed with a 10-year fixed-rate mortgage from Fannie Mae arranged by Brian Eisendrath of CBRE Group Inc.
The property is located in West Anaheim near the I-5 freeway, between Disneyland and Knott’s Berry Farm. Designed as a resort-style community, it features two swimming pools, sports courts, fitness center, clubhouse, a movie theater, banquet room and business center.
“The Orange County area continues to be a top-performing market with favorable economic and real estate conditions,” Jessica Levin, director of acquisitions in Intercontinental’s Los Angeles office, said in the statement. “With convenient access to Anaheim’s major employers, Madison Park offers an affordable alternative to the area’s newer development projects.”
“Highlighting Madison Park’s position in the market as a rare combination of luxury living at an affordable price compared to competing assets of similar quality proved beneficial to both the buyer and seller,” added Green of IPA.
For Intercontinental, Madison Park marks the second multi-family purchase made in recent months. In early March, it acquired Artessa at Quarry Village, a 280-unit rental community in San Antonio. A month earlier, it teamed with Security Properties to acquire Saratoga Downs Apartments in Napa, Calif. That Northern California property has 124 apartments and 54 townhomes.
Intercontinental currently owns and manages a diversified portfolio valued at more than $4 billion. The firm has expertise in real estate finance, development, construction management and asset management.
MG specializes in multi-family assets and currently has about 12,000 units in its portfolio. Over the past 20 years, it has teamed up with private investors and institutional partners to acquire more than 16,000 units in 82 communities worth more than $1.7 billion.