Carson complex sets mark for priciest multifamily deal in South Bay

San Diego investor acquires 300-unit property from MBK Rental Living for $171M

Los Angeles /
Jun.June 06, 2022 11:52 AM
Evolve South Bay property at 285 East Del Amo Boulevard, MG Properties' Mark Gleiberman and MBK Real Estate's Katsuo Yamanaka (iStock, Evolve South Bay, MG Properties, MBK Real Estate)
Evolve South Bay property at 285 East Del Amo Boulevard, MG Properties’ Mark Gleiberman and MBK Real Estate’s Katsuo Yamanaka (iStock, Evolve South Bay, MG Properties, MBK Real Estate)

A San Diego investor has bought an apartment complex in Carson in the most expensive multifamily deal in the South Bay this year.

MG Properties bought the 300-unit Evolve South Bay property at 285 East Del Amo Boulevard for $171 million, or $570,000 per unit, public records show. The seller, MBK Real Estate Companies, announced the deal last month, but did not disclose the price.

The company scored a $79.2 million loan from Freddie Mac for its purchase, according to loan documents filed with Los Angeles County.

MBK, a developer based in Irvine, bought the land for the complex in 2017 for $30 million and completed construction in May of last year. Rents at the complex range from $2,829 for a one-bedroom to $4,069 for a three-bedroom unit.

The deal fell short of last year’s benchmark for the South Bay, which came in July when Standard Communities bought a 357-unit complex in Carson for $220 million — a property that was subsequently converted into middle-income housing. The deal came to $616,000 per unit, the most expensive in the South Bay in 2021.

Rents are up about 21 percent year-over-year across Los Angeles, Long Beach and Anaheim, according to Realtor.com, prompting investors to flock to the asset class to capitalize on profits. About $19 billion was spent on multifamily properties in L.A. from the first quarter of 2021 through May of this year, according to CBRE.

However, as rising interest rates prompt monthly debt payments to balloon and profits start to shrink, investments in multifamily properties may start to slow.

Rising interest rates don’t seem to be deterring MG Properties. The firm alone has bought 20 complexes across the West Coast for more than $2 billion in the last year and is still targeting more purchases in California, Arizona, Utah and other markets.





    Related Articles

    arrow_forward_ios
    Grant Kirkpatrick with 308 The Strand (KAA Design Group, Paul Jonason, iStock)
    Manhattan Beach manse aims for record price on The Strand
    Manhattan Beach manse aims for record price on The Strand
    Queen Mary (Google Maps, iStock)
    Long Beach to size up Queen Mary in wake of failed redevelopment plan
    Long Beach to size up Queen Mary in wake of failed redevelopment plan
    Related Companies CEO Jeff Blau and Related's Justin Metz with the Godfrey Hotel Hollywood (Getty, Related, GodfreyHotelHollywood.com, iStock)
    Related spends $115M on stake in new Hollywood hotel
    Related spends $115M on stake in new Hollywood hotel
    Prologis' Hamid Moghadam and 8819 E Edison Ave in Ontario (Google Maps, Prologis)
    Prologis gets option on 177 more acres in Ontario Ranch
    Prologis gets option on 177 more acres in Ontario Ranch
    Optimus Properties co-founders Kamyar Shabani and K. Joseph Shabani with the property at 4256 W. 2nd Street in Koreatown (Optimus Properties LLC, RentCafe)
    Optimus Properties buys seven apartment buildings in core of LA
    Optimus Properties buys seven apartment buildings in core of LA
    Crow Holdings CEO Bob McLain and 2524 S Lilac Avenue (LinkedIn, Google Maps)
    Dallas outfit spends $72M on industrial in Inland Empire
    Dallas outfit spends $72M on industrial in Inland Empire
    SRG's Chris Payne and Burnham Ward's Bryon Ward with rendering of New Laguna Niguel City Center (Sares Regis Group, Burnham Ward Properties)
    ‘Napa Valley-esque’ downtown to be built in Laguna Niguel
    ‘Napa Valley-esque’ downtown to be built in Laguna Niguel
    From left: 17877 & 17875 Von Karman Ave in Irvine, PGGM CEO Edwin Velzel and MetLife CEO Michel Khalaf (LoopNet, PGGM, MetLife)
    MetLife, PGGM buy Irvine creative office in biggest OC deal of year
    MetLife, PGGM buy Irvine creative office in biggest OC deal of year
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...