MLG Capital Announces Investment in 10 Asset, 2,769 Unit Multifamily Portfolio in the Southwest Sunbelt Region

BROOKFIELD ,Wisconsin, Dec. 26, 2019 /PRNewswire/ -- MLG Capital, the premier investment manager in private real estate investments for Investment Advisors, Family Offices and High Net Worth Individuals across the U.S. since 1987, announced its most recent acquisition of a portfolio of ten multi-family assets containing ±2,700 units. The portfolio is located across three geographic locations within the burgeoning Southwest Sunbelt region, Houston, TX, Tulsa, OK and Oklahoma City, OK.

"MLG's purchase of the portfolio represents an exciting opportunity to acquire 10 assets of 'class B' multi-family at an attractive basis in locations that are in three fast-growing metropolitan regions of the Southwest with continued population growth, low unemployment, a strong corporate presence and high rankings for livability," said Ryan Mueller, Vice President of Acquisitions at MLG Capital.

Timing for the purchase is ideal as the U.S. occupancy rate for apartments is ±96 %[1], which is the highest occupancy rate recorded since 2001. Since 2000, the US has averaged 1.25M[2] new households created, further suggesting that demand is continuing to exceed supply.

Market occupancy in Houston is ±93%, Oklahoma City is ±94% and Tulsa is ±94%.

Purchase Highlights: 

• The series of diversified private equity real estate funds and a co-investment entity, all managed by MLG Capital, acquired the transaction 
• Diversification: The 10 asset portfolio consists of ±2,700 apartment units across 2 states and 3 major cities 
• Great basis: The portfolio  has a great acquisition basis vs. the cost of new construction in the marketplace 
• A subsidiary of MLG Capital, Valiant Residential, will operate and manage the portfolio. Valiant Residential currently manages over 14,000 units and has managed assets in the Southwest sunbelt region for over 30 years. Valiant Residential brings an entrepreneurial management style, leveraging local relationships and employees to reduce operating expenses.

*Since 1987 MLG Capital has acquired, holds, or has sold over $2.2B of private commercial real estate across the USA, consisting of over 22.3M commercial square feet which includes over 17,600 multi-family apartment units. All deals MLG Capital has exited, there has been an equity multiple of ±2.35x (For every $1 invested, MLG has produced $2.35 in total distributions).

MLG Capital is currently raising Capial in and deploying its fourth private real estate fund, MLG Private "Fund IV". The fund targets $200M in total equity and is structured for investors seeking both rental income and dividend income (generally sought after by retirement, foundation or endowment equity, in general).

Each of the MLG Private Funds acquires, directly or indirectly, a geographically diverse portfolio of commercial real estate primarily consisting of (in order of preference) multifamily, industrial, retail, and office properties in several key U.S. markets. The funds provide an investor centric business model focusing on cash on cash yields, quarterly distributions, and appreciation over time for investors in a tax efficient manner. 

This release does not constitute an offer to sell an investment in a security. Offers to sell an investment in a security can only be made to a qualified purchaser by delivery of an Investment Summary accompanied by a Subscription Document Booklet. The information contained in this email may be preliminary in nature and may have not been independently verified by MLG Capital or its affiliates. The recipient of this release should consult with its own investment, tax and/or legal professionals about the merits of the investment. MLG Capital does not make any representation or warranty as to the accuracy or completeness of any information presented in this email. Any financial information or projections may be initial estimates and may be subject to change without notice to recipient.

*As of 9/30/2019. Values, where discussed, are consistent of disposed of assets as well as the current internal valuation of currently held assets. Values may not have been reviewed by an independent third party and may be internal projections. Past performance, as always, is never an indication of future results.

Resources:

LinkedIn- https://www.linkedin.com/company/mlg-capital/
Website- www.mlgcapital.com 
MLG Fund IV- https://mlgcapital.com/investment-offerings/ 
Facebook- https://www.facebook.com/mlg.capital.re 
Twitter- http://www.twitter.com/mlgcapital 
Investor Relations: [email protected]

[1] Realpage – Axiometrics 2019 Q2
[2] US Census Bureau

Cheryl Pabich
MLG Capital
Phone: +262-364-5514
Email: [email protected]

SOURCE MLG Capital