NEW YORK (January 27, 2020) – Phoenix Realty Group (PRG), a national multifamily real estate fund manager, investor and operator headquartered in New York City, has completed over $700 million of investment activity in the fourth quarter. The investment activity included the purchase of four properties totaling approximately $219 million, the financing of two development projects totaling $305 million, and the disposition of the final two properties in a 16-property, 3,800-unit Class B multifamily value-added portfolio through a series of separate transactions.
PRG acquired the 16-property portfolio in 2015. The combined sales price of the 16 properties exceeded $800 million.
“We are thrilled with the outcome of this disposition,” said Keith Rosenthal, PRG’s 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’s primary investment strategy is to acquire underperforming Class B multifamily value-added properties and transform them into more valuable assets in growing, higher barrier-to-entry markets. This often means that PRG and its partners undertake significant and extensive interior and exterior renovations to upgrade the property with contemporary amenities and finishes, and put into place systems and staff in an attempt to reduce costs and increase the net operating income.
PRG continues to be an active multifamily value-added buyer. In the fourth quarter of 2019, PRG acquired four properties in Bowie, Maryland (Washington, DC metro area), Gresham, Oregon (Portland metro area) and Kent, Washington (Seattle metro area). The properties total nearly 1,000 units and an aggregate purchase price of $219 million. They were purchased by an affiliated entity of PRG and third-party joint venture partners.
According to Alex Saunders, Managing Director of PRG responsible for Western Region acquisitions, “The strategy for these properties is consistent with our focus on underperforming apartments in strong markets. 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-added strategy, PRG will be partnering with Artimus Construction to commence construction on the development of a $240 million mixed-income rental apartment tower in Queens, New York with 543 units. As reported by The Real Deal, this was the sixth largest real estate project in New York City to file building plans in 2018.
As a result of the acquisitions, PRG currently owns properties in Connecticut, New York, New Jersey, Maryland, North Carolina, Florida, Louisiana, Arizona, Colorado, California, Oregon and Washington.
About Phoenix Realty Group
Phoenix Realty Group LLC (www.phoenixrg.com) is a 20-year old firm focused on multifamily residential properties in higher barrier-to-entry and infill markets. The firm is headquartered in New York with personnel in California and Florida. The firm has three business lines: valueadded, new construction, and affordable housing. As of December 31, 2019, PRG has approximately $1.4 billion in gross real estate assets under management.