Investment Philosophy

The Fund’s investment philosophy is to create risk adjusted value for its partners through strategic multifamily investment which leverages the Fund’s core competitive advantages. The Fund’s competitive advantages include its experienced investment team, vertical integration with proven acquisitions, development, asset management, and property management disciplines, the nationally recognized industry reputation of the the Fund’s sponsor, Sares-Regis Group, and its extensive track record in the western U.S. value-add multifamily space.

Management Philosophy

The Fund employs a horizontal organizational approach which draws from the expertise of Sares-Regis Group’s vertically integrated multifamily disciplines. This unique management advantage creates a collaborative forum during the acquisitions and operations processes where strategies and ideas are cultivated and proposed to the Fund’s executive team to make final decisions. The Fund’s executive team then executes these strategies which are consistent with the investment guidelines and fiduciary responsibilities of the Fund to its investors.

Strategy & Execution

The Fund has a focused, well defined, value add strategy to purchase, aggressively operate, manage, reposition and sell high-quality multifamily assets in major western markets in the U.S., including: San Jose, San Francisco / Bay-Area, Los Angeles County, Orange County, San Diego, Seattle, Denver, Portland, and Phoenix. The Fund is acquiring a diversified portfolio of well-located multifamily properties, including garden-style, mid-rise and high-rise assets. Value-add opportunities with Class B assets located in B+/A locations are being targeted as these assets have the potential for increased revenues through higher rental or occupancy rates resulting from the repositioning, renovation, and external macro factors including a changing demographic climate and an improved economy.

The Fund will also pursue the acquisition of distressed assets in the target markets as well as refinance and recapitalization opportunities created as result of distress in the capital structure. Business plan execution is the responsibility of Sares-Regis Group’s in-house portfolio and property management teams; each has significant experience operating multifamily assets in each of the targeted fund markets. The Fund is diversifying its portfolio of multifamily property investments by geography, category or class of multifamily community and targeted demographic tenant base in order to minimize the overall risk profile of the portfolio.

The Fund’s sponsor, Sares-Regis Group, is a proven best in class operator / sponsor with an institutional heritage. As a vertically integrated firm with expertise as investor, manager, contractor, and developer, Sares-Regis Group provides experience and depth in every stage of the value-add process. This unique advantage translates to the Fund with the ability to source unique opportunities, create efficiency in operations and limit risk in execution – all of which ultimately benefit project returns.

Vertical Integration

The Fund draws on the vertically integrated structure of its sponsor, Sares-Regis Group. With this structure, the Fund possesses unique capabilities to successfully source off market transactions and execute numerous types of value-add strategies. The vertically integrated platform provides an unparalleled competitive advantage with respect to all aspects of the acquisition, business planning, financing, repositioning, rehabilitation, operation and disposition activities of an investment. The Fund’s acquisition team with years of local market knowledge, data and relationships to leverage in targeting acquisitions, additionally has direct access to, construction, development, and asset/property management expertise during the underwriting process.

The Fund’s expertise in financing optimizes the capital structure. The construction teams bring an alignment of interests in bidding and executing renovation projects. The property management team is similarly aligned and has the scale to provide sophisticated systems and top quality personnel to execute the business plan. The depth and experience of the asset management team pulls everything together, makes adjustments as required to optimize returns, and works with the acquisition team on the timing and ultimate disposition of the asset. It is this vertical integration structure which sets the Fund apart from other competitors in the multifamily sector.


The Fund’s acquisitions activities are led by Chief Investment Officer William Montgomery who has been with SRG for over 13 years. Mr. Montgomery has substantial multifamily acquisitions and dispositions experience and is responsible for transactions is all of SRG target markets which include Southern California, Northern California, Seattle, Portland, Denver and Phoenix. Supporting Mr. Montgomery is a dedicated team of acquisition and support professionals focused solely on Fund transactions. Acquisition opportunities are sourced from brokers and on a direct basis through key relationships and information gathered through activities relating to the firm’s involvement in the management of over 15,000 units in the Western US. As a result of the reputation and the relationships built by the CIO and the firm’s principals, opportunities are accessed that might not come to the market or are marketed to a limited buyer pool. The firm’s relationships with lenders, institutional investors and other principal owners also provide an inside track to secure investment opportunities based on certainty of execution and terms while not necessarily being the highest price.

Portfolio Management

The primary role of the portfolio management team is to ensure business plan execution for each Fund project translating the acquisition teams’ vision into an operational reality. This is accomplished through working with each acquisitions team during the underwriting process providing feedback and then working with and setting expectations with the property and construction management teams once the community is acquired. The portfolio management team oversees the rebranding & design processes, coordinates construction costs, budgets, and scheduling with the construction and property management teams, and habitually interfaces with the property management team to ensure the business plan is on target, both qualitatively and quantitatively making sure financial hurdles set during underwriting are met. The Fund’s portfolio management team is comprised of a group of seasoned multifamily industry veterans who have worked full-cycle on a large amount of varying classes of value-add multifamily product. Most projects were located within the Fund’s target markets. The Portfolio Management team also works closely with the Fund accounting group in preparing financial statements and various other reporting and trending analyses for partners.

Construction Management

The Fund’s construction management team is housed within the property management division and overseen by the Fund’s asset management team ensuring renovation plan execution. The construction division participates in the preparation of the renovation budget and required capital expenditures for each Fund project. Each project’s renovation scope is custom-tailored to the specific needs of that project which can include deferred maintenance, cosmetic or physical updating, curable construction or structural deficiency. The construction management team is well equipped to manage all levels of project renovations which include low, moderate and heavy renovation scenarios.


The Fund draws on its sponsor’s corporate accounting experience with a dedicated financial accounting team which prepares statements and financial reporting in accordance with accounting principles generally accepted in the United States under the AICPA Audit and Accounting Guide for Investment Companies. Fund reporting also adheres to the Real Estate Information Standards (REIS) that were developed by an independent Board under the National Council of Real Estate Investment Fiduciaries (NCREIF). The Fund’s accounting and information systems are cutting edge and support state of the art reporting to our partners.

Investor Relations

The Fund portfolio management team along with Penn Square, the Fund’s Co-Sponsor, coordinates all investor relations activities which include open and transparent communication and reporting standards with each investor. Individual investors may have their own custom-tailored requirements which the Fund can accommodate. Transparency with Fund investment activity is a core principal of the Fund and it is the responsibility of the portfolio management team and Penn Square to address the needs of each partner ensuring alignment of interests are met.

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