Los Angeles real estate companies are turning their attention to more distant markets and doing deals outside of California, from Provo, Utah to Orlando, Florida.
Two West Side firms have made significant acquisitions in the past few weeks.
Santa Monica-based MJW Investments has acquired a student housing estate at Brigham Young University in Utah. The price was not disclosed.
MJW has acquired a 154-unit, 924-bed complex in partnership with Redstone Residential Inc. in Provo, Utah.
With the acquisition, MJW now has over 7,000 student beds in the United States.
Amenities at the hotel near BYU include a hot tub, sandy volleyball court, pool and laundry facilities.
This is MJW’s sixth acquisition in the area.
In March, the company teamed up with Redstone Residential and Venice-based MHE Enterprises Inc. acquired a nearby student housing complex for 1,156 beds.
On its latest acquisition, MJW plans to spend money on apartments and amenities to make this property more attractive. Redstone Residential will oversee renovations and real estate operations.
“The hotel’s proximity to campus and great value propositions are just some of the aspects that make this property incredibly attractive,” said Mark Weinstein, president and founder of MJW Investments, in a statement.
“Thus, in 2021, we purchased more than 2,000 beds in Provo. We are delighted to offer a new life experience for students at BYU, and we are incredibly confident that it will be an improved life experience for students when our capital projects are completed, ”he added.
Voya Investment Management financed the acquisition.
Further south, Sotelle-based BH Properties acquired a mall in Plano, Texas on June 1 for an undisclosed price.
Known as Preston Shepard Place, this hotel boasts 361,780 square feet of retail space on 31 acres. The center was built in 1995 and has Marshalls, Burlington and Monday Morning as its anchor stores.
At the time of closure, the site was only 55% leased.
“Preston Shepard Place is an underutilized marketplace focused on growing leasing dynamics and traffic growth,” said Scott Henry, director of acquisitions at BH Properties, in a statement.
“With 163,002 square feet of vacant space, we have enough runway to support future cash flow growth. We plan to reach a wide range of retailers by moving large vacancies to smaller spaces. The high traffic location and asset dynamics make it possible to significantly increase the NOI (Net Operating Income), ”he added.
From 2008 to 2018, the center was 94.4% occupied, according to BH Properties. According to the company, the current low occupancy rate is due to the bankruptcy of retail enterprises.
The deal marks BH Properties’ first retail deal of the year.
While other local companies are adding assets, Woodland Hills-based CGI Real Estate Investment Strategies is ditching some properties in other states.
On June 3, the company announced that it had sold Astoria at Celebration in Celebration, Florida to Versity Investments for $ 74.5 million.
The property has 306 luxury apartment buildings spread over six four-story buildings with a central clubhouse and swimming pool.
The property was built in 2016 and then vacated due to construction problems in 2017. CGI acquired the empty community in 2019 for $ 43 million and brought it up to par. At the time of the sale of Versity Investments, the property was 99% leased.
“Our history as a greenfield developer has given us the experience and confidence that we can take on the challenge, as we did with Astoria, and turn it into a Class A resort,” said Guidi Cohen, CEO of CGI. in the statement.
“Having successfully restored the property to optimum condition and the Orlando market continues to grow, we were able to exceed our business plan in record time,” he added.
CGI expects real estate to perform well in the future.
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