MacKenzie Realty provides update on Aurora at Green Valley

MacKenzie Realty (MKZR) Capital announces an update on its development called Aurora at Green Valley, in Fairfield, CA. The company said, “Our Aurora project is progressing on schedule with no delays. The schedule continues to indicate occupancy will begin during the third quarter for the first residential building, with the other two buildings delivered by the end of the year. Sunrise Center clubhouse, with leasing offices, is scheduled to be delivered 45 days prior to the first residential building to assist in leasing activities. That building already has drywall installed. Indoor and outdoor furniture and fitness room equipment has been ordered. Prior to opening of Sunrise Center, we will conduct pre-leasing activities from a professional office located in a nearby office building owned by an affiliate of MRC Aurora. FPI, our independent property manager, is the biggest manager in northern California in terms of units managed. The project has had minimal overruns – right now we forecast a total use of only 23% of the contingencies provided in our budget. Next month we expect to commence drawing on our construction loan facility, as we will have invested our $12.5M cash equity. Our lender is Valley Strong Credit Union and they have already begun performing inspections so that our draw process is expected to be smooth. Market occupancies for similar projects are maintaining at 95% occupancy, including Nova, the newest large project in Green Valley which has now stabilized its 281 units at that 95% level. Rents in this market increased by 25% between 2021 and 2023. Rents pulled back a bit at the end of 2023, but have resumed a positive trend and are now just about 3% off the rental peak established in 2023. We believe there is not enough new product in this growth market to satisfy demand.”