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Intercontinental Real Estate Corp and MG Properties Acquires Agoura Hills Community for $87.3 Million
Intercontinental Real Estate Corporation in joint venture with MG Properties has acquired The Lexington Apartments, a 178-unit apartment community in the Southern California community of Agoura Hills for $87.3 million.
Built in 1986, The Lexington offers a unit mix of one- and two-bedroom apartment homes housed in 11 two-story residential buildings on a 15-acre-site at 30856 Agoura Road. 100% of the unit interiors have been renovated over the past five years by the seller.
Agoura Hills is in the heart of the Conejo Valley, an affluent region 35 miles west of Downtown Los Angeles and encompassing northwest Los Angeles County and southeast Ventura County. It includes the cities of Agoura Hills, Oak Park, Westlake Village, Newbury Park and Thousand Oaks. The area has been a magnet for families wanting to benefit from the strong school systems, vigorous park and outdoor recreational programs and growing regional economy. Amgen, Teradyne, Dole Foods, JD Power, Farmers Insurance and the Los Angeles Rams all have regional or corporate headquarters in the Conejo Valley.
“More than 80 percent of the housing stock in Agoura Hills is single family housing,” said Jessica Levin, Intercontinental’s Senior Director, Acquisitions out of the Boston-based firm’s Los Angeles office. “With median home prices of nearly $1.2 million, and a limited multifamily inventory with very little in the pipeline, Agoura Hills can arguably be considered one of the strongest and most stable suburban multifamily markets in the greater Los Angeles area.”
According to the Southern California Association of Governments, there are only 1,249 multifamily units in Agoura Hills, with less than 500 units built since 2000.
“The opportunity to acquire a first-to-lease community in this desirable suburban neighborhood is extremely rare, especially one of this size,” added Levin.
The Lexington is the largest multifamily transaction by unit size in Agoura Hills in the past 10 years according to Real Capital Analytics. During that time only five apartment communities with 100 or more units have traded hands in all of the Conejo Valley.
Together, the joint venture has a 3,200-unit multifamily portfolio consisting of eight communities in first and second ring suburban markets outside of Los Angeles, Denver, Phoenix, Portland, San Diego and the Bay Area. In February, the joint venture acquired a 394-unit garden-style multifamily community in the Denver submarket of Aurora, CO for $143 million.
“The Lexington is a unique asset that is well positioned to benefit from a recovery in the L.A. region. We are excited to expand our joint venture with Intercontinental and pleased to add to our portfolio’s operating scale in the region.” added Jeff Gleiberman, MG Properties’ President.
The Northmarq team of Vince Norris, Jim Fisher, Mike Smith and Bryan Schellinger marketed the property on behalf of the seller, a Calabasas, CA-based real estate development and investment firm.
Intercontinental Real Estate Corp and MG Properties Acquires 394-Unit Denver Apartment Community for $143 Million
Intercontinental Real Estate Corporation (“Intercontinental”) in joint venture with MG Properties has acquired Stone Cliff Apartments, a 394-unit garden-style multifamily community in the Denver submarket of Aurora, CO for $143 million.
This is the second significant real estate acquisition in Denver for Intercontinental in the past five months, adding to their existing Denver footprint. Intercontinental, whose portfolio includes 30.7 million square feet of commercial and industrial space, and more than 13,000 multifamily units across the United States, acquired a 147,000-square-foot-warehouse and distribution facility in Denver late last year. The firm plans to aggressively target additional investments, according to Jessica Levin, Intercontinental’s Senior Director, Acquisitions.
“Denver and its submarkets are experiencing significant job growth caused by an influx of major employers, a trend we see continuing over the long-term,” Levin said. “The strength and diversity of the economy are key drivers of our continued investment appetite in the Denver MSA.”
Built in 2000, Stone Cliff is located at 17886 E Greenwood Dr. on a low density 26-acre-site approximately 20 miles southeast of downtown Denver. The community’s one, two, and three bedroom units are housed in 21 three-story walk-up apartment buildings on 26-acre site. Common area amenities include a fitness center, resort-style pool and spa, a dog park with pet wash area, outdoor grilling areas, business center and TV lounge.
Intercontinental will infuse fresh capital into the property, renovating unit interiors to maintain and enhance the community’s competitive position in the marketplace.
“Stone Cliff’s proximity to a sizeable base of employers across several industries, convenient access to retail and nearby recreational amenities were among the locational qualities that attracted us to the investment,” said Allen Logue, Director, Acquisitions at Intercontinental. “We are diligently working to expand our multifamily portfolio in Denver. Stone Cliff’s physical and locational qualities, combined with Aurora’s strong demand and supply fundamentals, are an ideal fit with our investment objectives.”
Despite population growth of 17 percent over the last decade there have only been five multifamily projects delivered within a three-mile radius of Stone Cliff, according to JLL’s Denver Multi Housing Team, which marketed the property on behalf of the seller. Members of the team included Jordan Robbins, Pamela Koster, Jacob Frishman, Christ Hart and Shea Conway.
“Stone Cliff’s location, vintage and recent strong performance put it at the top of our target list. Also, coming off a very active year and recently closing with both the seller and broker helped secure the transaction in the current competitive market.” said Jeff Gleiberman, MG Properties’ Managing Director.
This is the seventh time that Intercontinental and MG Properties have partnered on an acquisition and will bring the total of Intercontinental and MG Properties’ portfolio together to 3,000 units.
PORTLAND, OR – August 7, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $66 million sale of and financing for Axcess 15, a 202-unit, transit-oriented apartment property in the Lloyd District of Portland, Oregon.
The HFF team represented the seller, Waterton, and procured the buyer, MG Properties Group. Additionally, the HFF team worked on behalf of the new owner to secure a loan through Freddie Mac’s CME Program. The securitized loan will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.
Located at 1500 NE 15th Avenue, Axcess 15 is within a short distance to several grocery stores and other retail and entertainment amenities, including Lloyd Center Mall, Moda Center and Oregon Convention Center. The four- and five-story property features a mix of one- and two-bedroom units averaging 851 square feet as well as more than 18,000 square feet of 100-percent-leased ground-floor retail. Community amenities include a 24-hour fitness center, business center, resident lounge, landscaped courtyards and controlled access parking. Unit amenities include open layouts with breakfast bars, in-unit washers and dryers, and balconies or patios.
The HFF investment advisory team representing the seller included senior managing director Ira Virden and director Carrie Kahn.
HFF’s debt placement team representing the borrower consisted of senior managing director Charles Halladay and directors Scott Gilson and Rick Salinas.
Marcus & Millichap (NYSE:MMI) today announced its Institutional Property Advisors (IPA) division has arranged the sale of Terracina Apartment Homes, a 736-unit garden-style apartment community located in Ontario, California. The $142.1 million sales price equates to more than $193,000 per unit.
“The acquisition of this property is proof of the hearty appetite that institutional investors have for well-located suburban multifamily properties in the Inland Empire,” said Greg Harris, IPA senior director.
Harris and Stewart Weston, also an IPA executive director, Kevin Green, Alexander Garcia Jr., Joseph Grabiec and Christopher Zorbas, all IPA senior directors, David Sperling, IPA director, and John Montakab, IPA associate director, represented the seller, a joint venture partnership between MG Properties Group and Rockwood Capital.
One of the largest multifamily communities in the Inland Empire, the property is located on two parcels totaling 41.3 acres at 3303 South Archibald Ave., within the borders of Ontario Ranch, an 8,200-acre master-planned community.
“The investment appeal of this asset is driven by stable operations, economies of scale provided by the asset size, upside through the expansion of the interior renovation program implemented by prior ownership, and the opportunity for substantial amenity improvements,” adds Green.
“The intense competition for high-quality multifamily assets in primary markets has led many investors to look to secondary markets like Ontario with strong fundamentals and growth potential,” said Garcia, who is based in the Inland Empire. “The high level of interest we received on Terracina Apartment Homes is reflective of this national trend.”