California-Based MG Properties Buys Denver Apartments For $76M
California-based investor MG Properties has been busy in the Denver market this year and recently purchased the Bear Valley Park Apartments, a 260-unit garden-style apartment complex at 5775 W. Dartmouth Ave.
The purchase marks MG Properties’ third buy in Denver this year. The company bought the complex from Jackson Square Properties, a San Francisco-based multifamily investment firm, for roughly $13M more than Jackson Square paid in 2018, according to records from the Denver Assessor’s Office.
Jackson Square was represented by Jordan Robbins and Alex Possick with JLL Capital Markets. MG Properties enlisted JLL’s Charles Halladay, Rick Salinas, Brandon Smith and Annie Rice to secure financing from Fannie Mae for the purchase.
“This investment reflects our confidence in Denver's economic growth potential and allows us to further leverage the efficiency of our regional operations there,” MG Properties President Jeff Gleiberman said in a press release.
Altogether, MG Properties holds more than 28,000 homes across the 103 properties in its portfolio in California, Washington, Arizona, Nevada, Colorado and Oregon, according to the company’s website.
MG Properties first entered the Denver market in 2021 after the company purchased the 238-unit Neon Local apartments in Denver’s South Broadway neighborhood for $108M. The apartment complex was just over a year old when MG Properties acquired it.
Since then, the company has purchased several properties across the Front Range. MG Properties bought the 204-unit Ridge at Castle Rock apartments in Castle Rock for $67.2M in April. The company shelled out $95M to acquire the 316-unit 4400 Syracuse apartments in Denver six months later.
These sales came as Denver apartments were fetching per-unit prices that were comparable to, if not above, their pre-pandemic levels. The Bear Valley Park purchase was a little more than $292K per unit, while the 4400 Syracuse buy came in at around $301K per unit.
Bear Valley Park is in the South Lakewood submarket, which CBRE measured as one of Denver’s hottest multifamily submarkets in the third quarter. South Lakewood had a vacancy rate of 5%, below the overall market’s vacancy rate of 5.7%, and average South Lakewood rent was $1,800, roughly $100 below the citywide average, according to CBRE.
Gleiberman described the South Lakewood submarket as “high-quality” and said the Bear Valley Apartments are an “excellent fit” for the company’s long-term investment strategy.
