Investing in ‘Home’

by Alanna Berman | October 2012 | 2 Comments »

By Alanna Berman

With a commitment to “Enriching Lives Through Better Communities,” MG Properties Group has grown to be the premier management company for apartment communities in the Western United States. Founded by entrepreneur Mark Gleiberman in 1992, MG Properties has provided consistent returns for investors and grown to become a company with more than 240 employees managing 8,000 units.

And strong management at MG really starts at the corporate office, where everything is managed in-house. With more than $800 million in assets, Vice President of Investor Relations Richard Gelbart’s job is just as important as those on-site managers at the apartment communities MG owns.

“When you have those tight controls, from the property level all the way up, it allows us to hit the projections we send to our investors, and [that is what they] rely on when they trust us with their investment dollars,” he says.

Focusing mostly on underperforming or value-added communities, MG Properties Group will purchase, renovate and manage its community investments to achieve the highest rate of return for investors.

“The apartment sector in real estate is very strong right now,” Gelbart says of the company’s recent successes. “Since the collapse of 2007-08, the office, residential and hotel industry were hit extremely hard, and what fared the best was the multi-family [home sector]. Now is a special time, because we are dealing with historically low interest rates, and we are able to achieve cash on cash returns that are in the eight-10 percent range. We haven’t seen those kinds of returns since the 1990s.”

Gelbart adds that MG has consistently tried to foster community in an existing apartment community when going in on the ownership side.

“You may have a community that is maybe 20 years old that hasn’t been kept up in that time and may need paint, concrete work and [sometimes more], so during the acquisition process we look at what’s really needed to make these buildings a community,” he says. “In addition to physical amenities, the programs that we offer for the communities make all the difference. From face painting days for children of our residents to barbecues in the communal spaces — all included in the cost of rent — the properties we own are run by phenomenal staff, work orders and repairs are taken care of in a timely manner and the community is kept up to date. It’s more than just a place to live, and residents feel a true sense of community. It’s these things that mean a lot to the families who live at our properties and to our investors.”

The strong track record for investors and the attention to detail at each MG-managed property is why more than 200 loyal investors have stayed on and invested in more than 20 properties over the years.

“You can invest your money anywhere today, but people want to invest at MG for several reasons,” Gelbart says. “Mark [Gleiberman] is extremely well-known in the community here in San Diego and within the Jewish community, as is his firm; but the historical returns have been very, very strong, and even in the downturn we have never lost a property here. It says a lot about the group and the class of assets we are putting investors dollars into. It’s why some of our investors have been with us for more than 15 years.”

 

MG Properties Group

10505 Sorrento Valley Road, Suite 300

San Diego, CA 92121-1608

www.mgproperties.com

(858) 366-6500

 

2 Comments to “Investing in ‘Home’”

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