MG Completes Reno’s Largest Bulk Multifamily Transaction
- Sep 24, 2015
MG Properties Group has acquired two multifamily properties totaling 722 units in what the company asserts is the largest multi-housing bulk transaction in the history of the Reno market. The deal involved the trade of the Vizcaya Hilltop Apartments and the Village at Iron Blossom Apartments, for which the buyer paid a total of $68.1 million.
Vizcaya Hilltop Apartments is a 318-unit property built in 1991, while the Village at Iron Blossom Apartments consists of 404 units and dates from 1984. Each property includes a mix of one-, two- and three-bedroom units, and features various common-area amenities.
The deal brings MG Properties total holdings in the Reno market to over 1,100 units. The company plans to renovate both properties by upgrading unit interiors, refurbishing common areas and addressing deferred maintenance issues.
Reno is a small, but relatively strong, apartment market. MPF Research reports that in Q2 2015, occupancy rose 0.4 percentage points quarter-over-quarter to come in at 97 percent, one of the highest rates recorded in Reno since the recession. Meanwhile, rents for new leases jumped 2.6 percent quarter over quarter, taking rents up 5.9 percent since the second quarter of 2014.
The South California-based MG Properties has been aggressively buying apartments recently, acquiring eight properties in the past year totaling about 2,600 units. The company says it’s targeting further acquisitions in Arizona, California, Colorado, Nevada, Oregon and Washington.
The brokers for the transaction were Newmark Grubb Knight Frank, Mission Capital and Auction.com. Financing was arranged by Brooks Benjamin at KeyBank National Association.