April 19, 2023
Core Markets Series: Atlanta
At MLG, we pursue direct and joint venture acquisitions throughout the Southeast region, focusing our efforts in Georgia, Tennessee, and Alabama. The Southeastern states are some of the fastest growing in the country, as the region has outpaced the United States in population growth by roughly 40% the past 50 years.1 One of our primary target markets within this region is the Atlanta Metropolitan Statistical Area (MSA). Atlanta is an attractive market, boasting a strong job market, access to quality higher education, major employers, and continued growth over the last two decades. Our portfolio currently consists of investments in 5 properties across the Atlanta MSA. There are 4 main reasons why we like the Southeast region and specifically the Atlanta MSA: High population concentration and continued projected population growth Stability of the labor market and low unemployment Strong economy and job growth Access to a more liquid investment High Population Concentration and Continued Projected Growth Atlanta is ranked the 8th largest MSA in the United States and currently has a population of over 6.1 million people.2 This accounts for more than half of the state of Georgia’s residents. From 2015 to 2020, the Atlanta MSA ranked 3rd in net population...
April 11, 2023
Understanding the K-1: A Guide for Real Estate Investors
As an investor in a diversified private real estate fund, you have likely come across the term “K-1” and have wondered both what it is and what it means to you. The K-1 is an important tax form that every investor in a partnership, including a real estate investment fund like the series of MLG Private Funds, receives annually, and is a very important document needed for filing your taxes. Let’s break down what a K-1 is, and more importantly, how this document can impact real estate investors personal tax filings. What is a K-1? A K-1 is a tax form that is used to report a partner’s (investors) share of the income, deductions, credits, and other allocable items of a partnership. It is required to be filed by every partnership (including a real estate investment fund) with the Internal Revenue Service (IRS) and provided to each partner (investor) annually. The K-1 reports the investor’s annual share of the partnership’s taxable income and is used to prepare the investor’s individual tax return What information is included on a K-1? A K-1 form typically includes the following information (see an example 2022 K1 from the IRS): Your tax basis calculation...
March 21, 2023
Core Markets Series: Midwest
The Midwest, as defined by the Bureau of Labor Statistics, is comprised of 12 states (IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI), over 68 million people, and is the backbone of American production. The Midwest is built on a deep history of agriculture, manufacturing, and mining industries that continue to fuel growth and have paved the way for advancements in tech, medical, and logistical innovation today. When we look at commercial real estate, the Midwest presents an opportunity to acquire quality properties, in a market with a significant percentage of individual and regional owners and strong rent-to-income ratios, often at higher cap rates than other regions. Its centrality and robust industries fuel stable job and wage growth and predictable population trends, all of which are critical to income growth and reducing the risk of supply imbalance. MLG’s corporate headquarters in Brookfield, WI positions us well to take advantage of these strengths and acquire quality real estate in the Midwest. Below are some of the reasons we like investing in commercial real estate in the Midwest: Individual and Regional Owners: The Midwest, seemingly more so than other regions, has numerous individual and regional owners of real...
February 16, 2023
MLG Capital Purchases Class A Apartment Property in San Antonio
Reata at Alamo Ranch becomes firm’s 29th multifamily asset in Texas Brookfield, Wis. (February 16, 2023) – MLG Capital – a national leader in diversified private real estate investments – today announced its acquisition of Reata at Alamo Ranch, located at 11211 Westwood Loop in San Antonio. The Class A, 227,000 sq. ft. multifamily property features 232 luxury studio, one-, two- and three-bedroom apartments with attractive amenities. “We are excited about this acquisition, which is located in a desirable area with high population growth and close proximity to some of the city’s largest employers,” said David Rodriguez, Assistant Vice President of MLG Capital. “With a low cost of living, strong job growth and a high quality of life, the San Antonio market continues to rank among the fastest growing cities in the country. We expect that trend to continue in the next five years and are pleased to expand our footprint in the area.” According to Costar, San Antonio ranked as the #2 city for white-collar job growth since the start of the pandemic, and the five-year population growth is projected at more than 13%. Similarly, the Bureau of Labor Statistics projects San Antonio to add an additional 170,000 new...
February 8, 2023
MLG Capital Tops $1 Billion in Private Real Estate Acquisitions for Second Consecutive Year
Brookfield, Wis. (January 10, 2023) – MLG Capital – a national leader in diversified private real estate investments – today announced that the firm saw another record-breaking year in 2022 as acquisitions totaled more than $1.2 billion. 2021 marked the first year that MLG surpassed $1 billion in asset acquisitions, and this past year it continued that success with more than 7,100 multifamily apartment units and 1.8 million square feet of commercial space, acquired across 14 states “MLG has invested in over $5.6 billion of transactions, which is the total of sold assets and the estimated current value of current investments as of Q3 2022. This figure represents approximately 39.5 million square feet of assets, inclusive of more than 33,900 multifamily apartment units across the country, further strengthening our diverse portfolio and positioning us as a leader in the industry,” said David Binder, Senior Vice President of MLG Capital. The Wisconsin-based firm switched to a diversified fund strategy in 2012 that provides investors the opportunity to participate in portfolios of real estate assets rather than individual deals. In May 2022, MLG launched its sixth diversified fund, with an equity raise goal of $400 million. “Our real estate investments continue to deliver consistent and strong...
October 18, 2022
MLG Capital’s Multifamily Ownership Grows to Over 23,000 Units with Recent Acquisitions
Brookfield, Wis. (October 18, 2022) – MLG Capital today announced it completed 12 acquisitions in Q3 2022. The acquisitions consisted of one office asset and seven multifamily assets. The properties are located in Colorado, Illinois, Minnesota, Tennessee, Virginia and Wisconsin. The acquisitions add more than 1,550 units and nearly 1.6 million square feet to MLG’s portfolio that currently spans 18 states. With the closing of these recent deals, MLG has had active, exited or pending investments totaling approximately 39.1 million square feet of total space across the U.S., with exited and estimated current value exceeding $5.6 billion. “2022 continues to be a strong year for MLG, and we are pleased with the ongoing momentum thanks to our team’s hard work and dedication amid a competitive market,” said Assistant Vice President, Lindsey Collings. “These latest acquisitions span across three of our real estate investment funds, including our unique Legacy Fund solution. All of these acquisitions are part of our ‘smart deal’ strategy that targets diverse, income-producing properties that can produce the best returns for our investors.” Acquisitions were made via MLG’s Private Fund V and Private Fund VI, as well as its Legacy Fund, a unique, tax-efficient divesting solution for owners of appreciated real estate assets. The...
September 14, 2022
Operators, Allocators and Why We’re Both
When it comes to real estate, there are a variety of ways that an investor can participate; most times, it’s through the lens of passive investing, or active investing. When it comes to real estate firms, you’ll find that there are similarities. Some may focus on allocation of funds (an allocator) and other on active day-to-day management (an operator), known as property management. Both strategies are essential to the success of an acquisition. That’s why, at MLG, we’ve chosen to do both. What is an Operator? Real estate operators are companies that engage in the day-to-day management of their properties. This can include leasing, maintenance, and renovations, among other tasks. Operators offer a unique perspective on property performance and local trends, while staying in-tune with their residents’ specific demands or desires. This may help inform some of the decisions being made on where funds need to be allocated to retain current tenants or attract new ones. This article from Tim P. Wallen is a great example of how understanding the wants and needs of a local market’s residents can help an operator make financial gain through a value-add strategy. Because of their market knowledge (whether locally, regionally, or nationally), the expertise of...
August 23, 2022
MLG Capital Purchases Two Memphis Area Apartment Properties
Brookfield, Wis. (August 23, 2022) – MLG Capital today announced its acquisition of two multifamily properties in the Memphis area – Preserve at Southwind (7991 Capilano Drive in Memphis) and Preserve at Bartlett (8840 Bristol Park Drive in Bartlett). The properties total 306 and 300 units respectively and both feature a range of one-, two- and three-bedroom floor plans with attractive amenities. “The Preserve Portfolio is an exciting acquisition for several reasons. Both properties are well-located in desirable submarkets of Memphis with strong school districts. Memphis is an integral part of the national logistics network, and these properties offer convenient access to some of the area’s largest employers – Southwind is mere blocks from the FedEx World Headquarters. The Bartlett asset plays a key role in providing upscale living at a manageable price point, given the rental housing supply constraints in that community,” said Mike Slinde, AVP of private equity for MLG Capital. “These acquisitions reflect MLG’s goal to expand our direct acquisition platform into the Southeast, a strategy to target a variety of income-producing multifamily properties that provide diversification for our Funds.” MLG Capital has been acquiring assets since 1987. Since 2012, the firm has operated under a fund strategy, providing investors the opportunity to...
July 13, 2022
Seven Recent Acquisitions Grow MLG’s Footprint to More Than 22,300 Units Nationwide
Brookfield, Wis. (July 13, 2022) – MLG Capital today announced it completed seven acquisitions in Q2 2022. The acquisitions consisted of one industrial asset and six multifamily assets, one of which is mixed-use, and are located in Iowa, Minnesota, Ohio, Oklahoma, New Mexico, Illinois and North Carolina. The acquisitions add more than 1,800 units and nearly 1.9 million square feet to MLG’s portfolio that currently spans 17 states. With the closing of these recent deals, MLG has had active, exited or pending investments totaling approximately 36.1 million square feet of total space across the U.S., with exited and estimated current value exceeding $5 billion. “We are proud of the team’s hard work within a very competitive market to identify and acquire several properties that provide the best value to our investors,” said Dan Price, vice president at MLG Capital. “Our ‘smart deal’ fund acquisition strategy targets diverse, income-producing multifamily and commercial properties where we can produce the best risk-adjusted returns for our investors. These recent property acquisitions, in particular, will benefit from a value-add strategy to grow operating income through the execution of interior and exterior property improvements.” Among the recent acquisitions include: Springbrook Apartments (111 83rd Ave NE, Fridley, Minn.) – a 361-unit suburban property...
May 31, 2022
MLG Capital Purchases Greensboro’s Summit Village
Brookfield, Wis. (May 31, 2022) – MLG Capital today announced its acquisition of the Summit Village multifamily property located at 199 Wind Road in Greensboro. The 198,500-square-foot property includes 276 studio, one- and two-bedroom apartment units. The firm plans to invest in a number of interior improvements to modernize the units, which were originally built in 1985. “Greensboro is a desirable investment market due to sustained job and population growth,” said Terry Wallen, Associate Vice President at MLG Capital. “MLG’s acquisition strategy enabled us to source this deal off-market and avoid what would certainly have been a competitive bidding process. This deal will provide enhanced diversification for our Fund and we believe it will contribute meaningfully towards achieving and hopefully exceeding our targeted returns.” MLG Capital has been acquiring assets since 1987, and since 2012, the firm has operated under a fund strategy, providing investors the opportunity to participate in portfolios of assets rather than individual deals. MLG’s residential property acquisitions focus on geographic, asset class and asset type diversification. The firm opened its MLG Private Fund VI in May with an equity raise goal of $400 million. Summit Village is the 1st property investment by MLG Capital in the Greensboro area and its 3rd in North Carolina,...