Phoenix Realty Group Acquires REO Apartment Portfolio
Phoenix Realty Group has acquired a portfolio featuring three separate multi-story REO apartment buildings in Southern California for $21.5 million.
According to PRG managing director Alex Saunders, the seller was looking for a buyer with a strong reputation for closing and the ability to purchase the entire portfolio given the distressed history of the properties.
In 2009, the lender took the assets back in order to embark on an 18-month intensive management effort to bring the occupancy of the three buildings to 95%.
The properties purchased by PRG include Ascot Park (160 units in 25 two-story buildings) and Summit Place (80 units in 10 two-story buildings) in San Bernardino, and Park Heights (192 units in 15 two-story buildings) in Highland.
The properties offer market-rate and government-subsidized units to renters employed throughout the state’s region, such as local employers like Arrowhead Regional Medical Center, California State University San Bernardino and nearby community colleges.
Coastline Real Estate Advisors, which stabilized the properties’ operations over the past year, was maintained by PRG as the property management firm.
“A year ago, these properties were in poor shape due to low occupancies largely driven by poor management and a lack of maintenance,” said Edward Ratinoff, managing director of national acquisitions at Phoenix Realty Group. “But aggressive management and capital improvements restored these properties into the type of middle-market, family-friendly apartments that our institutional real estate funds target. The improved conditions allowed us to obtain attractive financing from Freddie Mac.”