Los Angeles real estate companies are turning their attention to more distant markets and making deals outside of California, from Provo, Utah, to Orlando, Florida.
In recent weeks, two Westside companies have made significant acquisitions.
Santa Monica-based MJW Investments has purchased a student housing community at Brigham Young University in Utah. The price was not disclosed.
MJW acquired the community of 154 units and 924 beds in partnership with Redstone Residential Inc, based in Provo, Utah.
With the acquisition, MJW now has more than 7,000 student accommodation beds across the United States.
Facilities at the property near BYU include a hot tub, beach volleyball court, swimming pool, and on-site laundry facilities.
This is MJW’s sixth acquisition in the region.
In March, the company, along with Venice-based Redstone Residential and MHE Enterprises Inc., acquired a nearby 1,156-bed student housing community.
In the most recent acquisition, MJW plans to spend money on units and equipment to make it a more attractive property. Redstone Residential will oversee the renovations and real estate operations.
âThe property’s proximity to the campus and the outstanding offerings are just a few of the aspects that make this property incredibly attractive,â said Mark Weinstein, president and founder of MJW Investments, in a statement.
âThis brings our acquisitions in 2021 to more than 2,000 beds in Provo. We are excited to bring a new life experience to BYU students, and we are extremely confident that it will be an enhanced life experience for students once our investment projects are completed, âhe added.
Voya Investment Management financed the debt for the acquisition.
Further south, Sawtelle-based BH Properties acquired a shopping center in Plano, Texas on June 1 for an undisclosed price.
Known as Preston Shepard Place, the property has 361,780 square feet of retail space on 31 acres. The center was built in 1995 and has Marshalls, Burlington and Tuesday Morning as its flagship stores.
The site was only 55% leased at closing.
âPreston Shepard Place is an underutilized retail site ready for rising rental dynamics and increased traffic patterns,â Scott Henry, director of acquisitions at BH Properties, said in a statement.
âWith 163,002 square feet of vacancy, we have plenty of avenues to generate future cash flow growth. We plan to accommodate a wide variety of retailers by segregating the larger vacant units into smaller spaces. The high traffic location and asset dynamics offer an opportunity to generate significant growth in NOI (net operating income), âhe added.
From 2008 to 2018, the center was 94.4% occupied, according to BH Properties. The current low occupancy rate is due to business failures, according to the company.
The transaction is BH Properties’ first commercial transaction of the year.
As other local businesses add assets, CGI Real Estate Investment Strategies, of Woodland Hills, is relinquishing some properties in other states.
The company announced on June 3 that it had sold Astoria at Celebration in Celebration, Fla., To Versity Investments for $ 74.5 million.
The property has 306 luxury multi-family units spread across six four-story buildings with a central clubhouse and swimming pool.
The property was built in 2016 before being vacated due to construction issues in 2017. CGI acquired the vacant community in 2019 for $ 43 million and brought the property up to standard. At the time of its sale to Versity Investments, the property was 99% leased.
âOur history as a developer has given us both the experience and the confidence that we can take on a tough challenge like we did with Astoria and turn it into a Class A resort style property,â said said Gidi Cohen, CEO of CGI. in a report.
âAfter successfully restoring the property to peak condition, and with the continuing trend in the Orlando market, we were able to exceed our business plan in record time,â he added.
CGI expects the property to perform well in the future.
For reprint and license requests for this article, CLICK HERE.