New York-based Phoenix Realty Group (PRG) recently announced the completion of a $700 million real estate investment whirlwind of activity in the last quarter of 2019. The transactions included the purchase of four properties totaling approximately $219 million and the financing of two development projects totaling $305 million.
The company also sold off the final two properties of a 16-property, 3,800-unit portfolio through a series of separate transactions. PRG bought the 16-property portfolio in 2015 and cashed out by selling it for over $800 million.
“We are thrilled with the outcome of this disposition,” said Keith Rosenthal, PRG president and co-founder. “We successfully repositioned, renovated, and improved operations at these properties, which was consistent with our strategic value-added goal for the portfolio.”
PRG focuses on acquiring underperforming Class B multifamily value-add properties and transforming them into more valuable assets in growing, higher barrier-to-entry markets. In keeping with that strategy, the firm acquired four properties in Bowie, Md., near Washington, D.C.; Gresham, Ore., which is in the Portland metro area; and Kent, Wash., in the Seattle metro.
The properties total nearly 1,000 units and were acquired for $219 million. They were purchased by an affiliated entity of PRG and third-party joint-venture partners.
“The strategy for these properties is consistent with our focus on underperforming apartments in strong markets,” said Alex Saunders, PRG managing director responsible for Western acquisitions. “As the operator, we will renovate the units and common areas, enhance the amenity offerings, and improve operations to try to increase value and provide a better living experience for the residents.”
In addition to its value-add strategy, PRG is partnering with Artimus Construction on developing a $240 million, 543-unit, mixed-income rental apartment tower in Queens, New York.