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.
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