Brookfield, Wis. (June 23, 2021) MLG Capital today announced that it has sold Frederick Lofts, a 100-apartment unit property, located at 840 W. Juneau Ave in Milwaukee’s Pabst Brewery District. The sale closed on June 23 to an undisclosed buyer. The disposition of the property is part of MLG’s “smart and critical selection of deals” strategy to buy and sell real estate investments at key opportunities in a property lifecycle, and leverage market dynamics combined with the potential to grow operating income and/or reduce operating expenses to maximize return to investors.
“At MLG, we look for proactive opportunities to acquire assets where we feel there is room to increase the overall income of assets to enhance the property value, whether through property improvements, equalizing rents, capitalizing on growing communities and more,” said David Binder, Vice President at MLG. “We then proactively sell those assets at key times to meet our investors’ expectations of returns.”
MLG Capital purchased the 100-unit, Class A multifamily property in March 2019 as part of MLG Private Fund III. That fund, MLGs’ third in its series of nationally diversified private real estate investment funds, included $150 million of original equity that yielded the acquisition of 40 assets, totaling more than 3.7 million square feet of property inclusive of nearly 8,500 multifamily units across 14 states. Seventy-five percent of assets in Fund III are multifamily properties, with the remaining spread across industrial, retail and office.
“A big part of our ‘smart deal’ strategy is knowing the right time to buy and recognizing the right time to exit, always with a lens on our investors to receive the maximum return. MLG is generally not a long-time holder of assets, with an average holding period of all sold assets of roughly 7 years, since 1987. Our investors participate with us because of our ability to consistently generate deal flow regardless of market cycle and dive into our deep expertise and experience in leveraging assets to create the best outcomes,” said Binder.
The sale of Frederick Lofts marks the firm’s seventh disposition under Fund III, which targets robust cash on cash distributions and appreciation over time, with an overall target of 12-15 percent net returns to its investors. MLG’s fund strategy provides investors the opportunity to participate in portfolios of assets, rather than individual deals, and the firm’s property acquisitions focus on geographic, asset class and asset type diversification across the United States. MLG Capital recently opened its fifth fund, MLG Private Fund V, with a targeted equity size of $300M, in January 2021.
About MLG Capital
MLG Capital is the premier outsourced investment manager in private real estate for investment advisors, family offices and accredited individuals. Since its inception in 1987, the firm and associated entities have had active, exited, or pending investments totaling approximately 26.5 million square feet of total space across the United States, inclusive of more than 21,800 apartment units, with exited and estimated current value exceeding $2.9 billion, as of 3/31/2021. MLG Capital targets to acquire between $400 and $500 million in commercial real estate annually; with approximately half of those acquisitions involving strategic partners. For more information about MLG Capital and its investments, visit the firm’s newsroom.
For more information, contact:
Katie Whitlock, Public Relations
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 a Confidential Private Placement Memorandum (the “Memorandum”), any supplements to the Memorandum and accompanied by a Subscription Document Booklet. The information contained in this release 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 release. Any financial information or projections may be initial estimates and may be subject to change without notice to recipient. An investment into a private offering is subject to various risks, none of which are described herein. All figures as of 3/31/2021. Value consists of disposed of assets as well as the current internal valuation of currently held assets as of 3/31/2021. Values may not have been reviewed by an independent 3rd party and may be internal projections.