200-unit apartment site at Point Ruston attracts new San Diego owner
August saw a big-ticket transaction involving a signature Tacoma apartment property.
MG Properties Group, a San Diego-based real estate investor and operator, acquired the Village on Main Apartments, 5020 Main St., at Point Ruston for $85.5 million, from Point Ruston Building 7 LLC, led by local developer Loren Cohen.
About 18,500 square feet of ground floor retail will be retained by the Point Ruston LLC.
The seven-story, 200-unit site opened for tenants late last year and was around 85 percent occupied at time of the sale’s closing, according to Paul Kaseburg of MG Properties Group.
It is the company’s first property in Tacoma, with eight sites managed by MG Properties in the Seattle-Tacoma area.
“We have been tracking this location for years,” Kaseburg told The News Tribune via email, with this transaction taking shape over roughly 90 days.
“We have taken over management with our regional team and will be improving the resident experience in the coming months by further upgrading the property’s common areas,” he wrote.
MG Properties currently oversees 23,000 rental homes in California, Washington, Arizona, Nevada and Oregon, including 78 communities.
According to its announcement of the purchase Aug. 26, the company noted, “MG Properties is continuing to target further acquisitions in Washington, Oregon, California, Arizona, Nevada, Utah, Colorado and Texas. “
“We’re thrilled to be expanding our reach in the Pacific Northwest with Village on Main,” said Mark Gleiberman, founder and CEO of MG Properties Group in the company’s news release. “Tacoma has tremendous potential, and we believe Village on Main provides an opportunity to participate in its continued growth.”
In July 2017, the site received approval from the Tacoma City Council for a 12-year multifamily property tax exemption. Under that program, at least 20 percent of the newly created units must be affordable to renters with household incomes no greater than 80 percent of the area median income.
