MG Properties Divests Southern California Senior Housing Portfolio in $163 Million Deal

MG Properties sells a 551-unit affordable senior housing portfolio in Escondido to Eagle Partners for $162.5M, supported by JP Morgan and Fannie Mae financing.

By: AXL Media

Published: Mar 13, 2026, 6:16 AM EDT

Source: https://www.multihousingnews.com/

A Major Disposition in the Senior Housing Sector

In a significant reshuffling of Southern California residential assets, MG Properties has offloaded a substantial senior housing portfolio for $162.5 million. The buyer, a public-private partnership led by Eagle Partners, secured the 551-unit collection located in the supply-constrained Escondido submarket. The acquisition was supported by a complex capital stack involving Red Stone Equity Partners, the California Statewide Communities Development Authority (CSCDA), and Affordable Housing Access. This deal highlights the growing institutional interest in specialized residential assets that combine age-restricted living with affordable housing incentives.

Financing Structure and Partnership Synergy

The acquisition was fueled by a robust $104.4 million financing package provided by JP Morgan, consisting of two distinct Fannie Mae loans. This transaction marks a recurring collaboration between Eagle Partners, Red Stone, and JP Morgan, following their previous $107 million acquisition of the Hills at Hacienda Heights in Los Angeles—a property also formerly owned by MG Properties. By leveraging agency debt and private equity, the partnership has demonstrated a strategic blueprint for acquiring large-scale, income-restricted assets from established developers like MG Properties.

Preservation of Affordable Senior Housing

The portfolio consists of two primary assets: The Hendrix Apartments and The Hadley Apartments, located within a mile of each other approximately 34 miles northeast of downtown San Diego. Under the new ownership, Eagle Partners is set to initiate a long-term preservation strategy alongside a capital improvement program. A critical component of the deal, facilitated by a CSCDA grant, mandates that at least 80 percent of the units—roughly 440 apartments—remain restricted to households earning no more than 80 percent of the Area Median Income (AMI) for the next decade. This ensures vital housing stability for seniors in a region characterized by high costs of living.