MIG Real Estate, a Newport Beach, Calif.,-based real estate investment firm, has acquired Waterleaf, a 456-unit, value-add apartment community in Vista, Calif., from MG Properties Group in a $174 million deal.
The acquisition, which is the second largest multifamily transaction in San Diego so far this year, was brokered by a Walker & Dunlop team by Hunter Combs. The firm represented both buyer and seller. MIG Real Estate has assumed the property’s existing debt. According to Yardi Matrix data, MG Properties Group has a $76.4 million 10-year loan funded by Fannie Mae that was originated on Nov. 30, 2017. The loan has an annual interest rate of 3.51 percent and matures on Dec. 1, 2027. MG Properties purchased the property from Investcorp for $117.5 million in November 2017. Investcorp had already owned the asset for two years at that point, having previously acquired it from RedHill Realty Investors for $86.2 million, according to Yardi Matrix data.
MIG Real Estate’s $381,578-per-unit acquisition of Waterleaf marks made it the second-largest multifamily transaction this year only after the sale of La Jolla International Gardens, now Allina La Jolla, a 400-unit community in the University City submarket. That community was acquired by Pacific Urban Investors for $177.3 million in July.
Year-to-date, San Diego represents 14 percent of U.S. multifamily transactions exceeding $150 million, Combs, managing director of Investment Sales at Walker & Dunlop, said in a prepared statement. He further noted the metro’s strong market fundamentals and tenant base, identifying rent growth as a significant driver of the market’s strength. On that metric, San Diego outperforms all California markets and ranks fifth nationally at 5.1 percent for 2023.
Waterleaf details
Located at 333 North Emerald Drive, Waterleaf is minutes from downtown Vista and 30 minutes to downtown San Diego. The property is close to State Route 78, giving residents immediate access to major employment hubs in San Diego County, particularly those along the 78 Corridor in Vista, Oceanside, Carlsbad, San Marcos and Escondido.
Built in 1984, Waterleaf has one- and two-bedroom floorplans, with apartments ranging in size from 740 to 940 square feet, with an average of 876 square feet. Rents range from $2,353 to $2,664, with an average of $2,558, according to Yardi Matrix data. Apartment features include washers and dryers in all units and high-speed internet access. At the time of the sale, Waterleaf was about 97 percent occupied.
Community amenities include a clubhouse, two state-of-the-art fitness centers, two swimming pools and spas, a co-working lounge, playground, basketball court and a tennis-and-pickleball court. The property is situated on nearly 20 acres of land and has 36 buildings and a total of 749 parking spaces.
Active market participants
In August, MIG Real Estate acquired Newport Palms, a 138-unit apartment complex in Costa Mesa, Calif., from Camden Property Trust for $61.1 million. Walker & Dunlop also represented both buyer and seller in that deal. That transaction was the largest multifamily investment in Costa Mesa in more than a year and the second-highest figure multifamily transaction in Orange County to date in 2023, according to Walker & Dunlop. A month earlier, MIG Real Estate sold Autumn Ranch on Swenson Farm, a 336-unit multifamily community in Pflugerville, Texas, to Knightvest Capital.
Meanwhile, MG Properties has been an active buyer this past year. In May, the San Diego-based firm acquired Artesia, a 192-unit multifamily community in the Seattle suburb of Everett, Wash., from RISE Properties for $61.6 million. The company purchased Ridge at Castle Rock Apartments, a community near Denver formerly known as Springs at Castle Rock, a month earlier from Continental Properties for $67.1 million. MG Properties expanded its Nevada holdings in January when it acquired Tribeca Apartment Homes, a 312-unit asset in North Las Vegas, from The Bascom Group for $81 million.
