SARES•REGIS Multifamily Fund Acquires Value-Add Property in Prime Denver Location

SARES•REGIS Multifamily Fund, L.P. acquired Arabella, a community of 156 apartments in Denver, Colo., from Fairfield Properties.

Bill Montgomery, the fund’s co-chief investment officer, said Arabella is “in dead center” of the Denver Tech Center, an 850-acre business hub south of downtown with more than 25 million square feet of office and retail development.

“Denver is among the nation’s top markets for housing and rent growth, and Arabella will benefit from the substantial upgrades that are planned, the first since it was built in 1980. Over the years it’s become a fish out of water compared to the surrounding metropolis. Our renovation program will enable Arabella to take advantage of its prime location,” Montgomery said.

Arabella is the third rental community acquired by the SARES REGIS Multifamily Fund since its formation earlier this year. The fund recently closed on two apartment communities totaling 288 units in Redmond, Wash., and the Los Angeles suburb of Norwalk.

Built in 1980 at 4982 S. Ulster Street, Arabella features a mix of studio, one- and two-bedroom apartments in three-story garden-style buildings. Amenities include a pool, fitness center and resident business center.

Improvements are planned throughout the property. Interiors will include upgraded plank flooring, stainless appliances, upgraded lighting and hardware, two-tone paint and granite counter-tops. Washer and dryers will be added to 42 apartments. Plans also call for new balcony railings, ground-level patio expansions, wood repairs and a complete repainting with a contemporary palette. Significant landscaping improvement is planned along with renovation of common areas. A spa, outdoor kitchen/BBQ area and dog-washing station will be added.

“This is a significant renovation project needed to reposition Arabella to compete in its submarket. We are confident that with the work completed and a solid new management team in place we will be able to achieve a significant return on cost for our investors,” he said.

“We intend to acquire a diversified portfolio of well-located properties primarily in coastal California, Seattle and Denver, as well as Portland and Phoenix. The fund is operating under a focused well-defined, value-add strategy to purchase, manage, reposition, aggressively operate and sell high-quality multifamily assets in our target markets. Arabella is the “poster-child” of exactly the type of property we seek for our value-add program,” Montgomery said.

The fund was launched this year by SARES•REGIS Group with $114 million in equity commitments, giving the fund the ability to acquire more than $300 million in assets. SARES•REGIS Group manages a portfolio of more than 15,000 apartments units valued at more than $2.5 billion. Since its inception in 1993, SARES•REGIS Group has acquired or developed 20,000 homes and apartments valued at more than $3.4 billion throughout California, Colorado, and Arizona. SARES•REGIS Group is also California’s leading privately held developer of LEED-certified apartments.

SARES•REGIS Multifamily Fund Acquires Pacific Northwest Value-Add Property

SARES•REGIS Multifamily Fund, L.P. completed its second acquisition with the purchase of Sammamish Ridge Apartments, a 96-unit community in Redmond, Washington.

“This community fits with all aspects of our value-add strategy, including location. It is two miles from Microsoft’s world headquarters and one mile from downtown,” said Ken Gladstein, the fund’s Co-Chief Investment Officer. “Redmond is one of the most sought-after submarkets in the Puget Sound region due to its high-tech employment base and thriving city center.”

Built in 1981, the property is comprised entirely of two-bedroom, two-bath apartments in eight three-story buildings. Each apartment is 1,004 square feet and includes a washer and dryer. Amenities include a pool, spa, fitness center, media room and business center.

Planned improvements to unit interiors include upgraded plank flooring, stainless appliances, upgraded lighting and hardware, new paint, carpet, interior doors and counter-tops. Improvements also will be made to building exteriors, landscaping, common areas and amenities.

Gladstein said capital improvement efforts by prior owners were inconsistent. “Now with improving economic conditions, tightening occupancies and growing rents, a more focused value-add strategy makes sense. This is especially true in a high income and job-rich submarket like Redmond, which possesses similar characteristics to the Bay Area,” he said.

SARES•REGIS Multifamily Fund intends to acquire a diversified portfolio of other well-located properties primarily in coastal California, Seattle and Denver, as well as Portland and Phoenix.

“The fund has a focused, well-defined, value-add strategy to purchase, manage, reposition, aggressively operate and sell high-quality multifamily assets in major western U.S. markets,” Gladstein said.

The fund was launched this year by SARES•REGIS Group with more than $100 million in equity commitments, giving the fund the ability to acquire more than $300 million in assets.

SARES•REGIS Group manages a portfolio of more than 15,000 apartments units for its partners and investor clients valued at more than $2.5 billion. Since its inception in 1993, SARES•REGIS Group has acquired or developed 20,000 homes and apartments valued at more than $3.4 billion throughout California, Colorado, and Arizona. SARES•REGIS Group is also California’s leading privately held developer of LEED-certified apartments.

SARES•REGIS Multifamily Fund Acquires First Value-Add Property in Norwalk

SARES•REGIS Multifamily Fund, L.P. closed its first apartment community acquisition with the purchase of Avalon at Civic Center, a 192-unit community in Norwalk, Calif.

“We see an opportunity to take one of the top properties in this suburban Los Angeles submarket to a higher level with substantial improvements throughout,” said Bill Montgomery, the fund’s co-chief investment officer.

The property is being rebranded as Solterra at Civic Center. Built in 1987 at 12700 Bloomfield Avenue, the community features a mix of spacious one- and two-bedroom apartments and townhomes in two- and three-story Mediterranean-styled buildings. Amenities include pools, spas, a fitness center and tennis and sports courts.

Improvements planned for Solterra at Civic Center’s interiors include upgraded plank flooring, stainless appliances, upgraded lighting and hardware, two-tone paint and granite counter-tops. Montgomery said improvements will be made to building exteriors, landscaping and common areas, including the leasing and fitness centers, club room, cabanas, spas and barbecues.

“The previous owner had performed some minor upgrades and property maintenance to the community over their holding period, however no significant improvements were economically feasible over the last several years during the market downturn,” Montgomery said.

SARES•REGIS Multifamily Fund intends to acquire a diversified portfolio of other well-located properties primarily in coastal California, Seattle and Denver, as well as Portland and Phoenix, said fund CEO Geoffrey L. Stack.

“The fund has a focused, well-defined, value-add strategy to purchase, manage, reposition, aggressively operate and sell high-quality multifamily assets in major western U.S. markets,” he said.

“Solterra at Civic Center is exactly the type of property we seek for our value-add program,” Stack said.

HFF brokers Mark Peterson and Sean Deasy represented the seller, Avalon Bay.

As a leading western United States real estate developer and manager, SARES•REGIS Group manages a portfolio of more than 15,000 apartments units for its partners and investor clients valued at more than $2.5 billion. Since its inception in 1993, SARES•REGIS Group has acquired or developed 20,000 homes and apartments valued at more than $3.4 billion throughout California, Colorado, and Arizona. SARES•REGIS Group is also California’s leading privately held developer of LEED-certified apartments.

SARES•REGIS Group Launches Multifamily Fund To Acquire Value-Add Properties In Western U.S.

SARES•REGIS Group has launched the SARES•REGIS Multifamily Fund, L.P. SRG’s Multifamily Fund closed with more than $100 million in equity commitments which can be leveraged to provide it the ability to acquire more than $300 million in assets, according to the fund’s CEO Geoffrey L. Stack. SARES•REGIS co-sponsored the fund with Penn Square Real Estate Group headquartered in Radnor, Penn.

“The fund has a focused, well-defined, value-add strategy to purchase, manage, reposition, aggressively operate and sell high-quality multifamily assets in major western U.S. markets,” said Stack, who also is a SARES•REGIS Group Managing Director.

“The fund intends to acquire a diversified portfolio of well-located properties primarily in coastal California, Seattle and Denver, as well as Portland and Phoenix,” Stack said. “Garden-style, mid-rise and high-rise assets will be considered. The focused strategy of the fund, which is comprised of a select group of larger institutional investors, allows for immediate deployment of capital to take advantage of numerous value-add acquisition opportunities,” he said.

Rob Wagner, fund President and SARES•REGIS Group Managing Director, said, “SRG’s structure as a vertically integrated company acting as investor, manager, contractor, and developer provides experience and depth in every stage of the value-add process as well as economies of scale which will benefit investor returns. We’ve been operating in the western U.S. for more than 20-years and have in-depth market knowledge along with a solid reputation for execution with brokers, lenders and sellers. They know we can close quickly, and the fund structure will make us even more nimble in acquiring multifamily opportunities.”

According to Marcus & Millichap’s 2013 National Apartment Index, eight of the nation’s top 14 rated markets are in the west and will be targeted by the SARES•REGIS Multifamily Fund. The region’s employment growth is being fueled by technology jobs, especially in coastal markets where housing supplies are most constrained. Additionally, demographic trends nationally project that low homeownership rates, new household formation fueled by the Millennium generation, and immigration will produce 4 million new renters annually.

As a leading western United States real estate developer and manager, SARES•REGIS Group manages a portfolio of over 13,000 units for its partners and investor clients valued at more than $2.5 billion. Since its inception in 1993, SARES•REGIS Group has acquired or developed 20,000 homes and apartments valued at more than $3.4 billion throughout California, Colorado, and Arizona. SARES•REGIS Group is also is California’s leading privately held developer of LEED-certified apartments.

SARES•REGIS MULTIFAMILY FUND BUYS PINE@SIXTH

SARES•REGIS Multifamily Fund acquired Pine@Sixth, a community of 158 apartments in Long Beach, California. It is the ninth apartment community purchased by the fund and represents full deployment of the fund’s $114 million.

“With the closing of Pine@Sixth, Fund I is complete,” said Bill Montgomery, the fund’s co-chief investment officer. “In 18 months we have purchased a diverse group of properties with 1,377 apartments in Seattle, Portland, San Jose, Los Angeles, San Diego and Denver. Their capitalization total was more than $329 million dollars,” Montgomery said.

Located in the North Pine district of Long Beach at the corner of Sixth Street and Pine Avenue, the community features a mix of studio, one- and two-bedroom floorplans with lofts on the upper floor. Built in 1986, the property is a podium design with three levels of living space over a ground-level garage and 8,661 sq. ft. of storefront retail.

Long Beach is undergoing a re-gentrification process with housing and new shops and restaurants expanding in the downtown market. Montgomery said that Pine@Sixth, which is a short walk from the center of that activity, fits with the fund’s strategy to add value through renovation, repositioning and aggressive operation.

Previously owned by UDR and originally planned as a condominium conversion before the economic downturn, the asset has had no capital improvement or significant maintenance upkeep for some time. After putting mechanical systems in good repair, plans call for an exterior facelift to include a multicolor paint scheme and art-deco brow elements added to the retail façade.

Planned interior improvements include cabinet facings, stainless appliances, under-mount sinks, quartz countertops, upgraded hardware and lighting, solid-surface plank vinyl flooring, two-tone paint and washers and dryers.

Montgomery said the resident courtyard space will be “re-imagined” as entertainment and social space and will include a fire-pit, water feature, landscaping improvements and expanded outdoor kitchen space. One of the community’s laundry facilities will be converted to a dog-wash station. The leasing center will be relocated. The fitness facility will be refurbished.

Long Beach has one of the world’s largest seaports and a solid job base in and around the city. There is easy freeway access to job centers in Orange County and Los Angeles and a Metrorail stop is one block from the property.

This will be a significant renovation and reimagining of this community that will completely reposition Pine@Sixth to compete with upgraded and new communities in the submarket. With the work completed and a new management team in place, we will be will able to achieve a significant return for our investors.

SARES•REGIS Multifamily Fund Acquires Alterra, 143 Apartments In San Jose, Calif., Renovation Plan Announced

SARES•REGIS Multifamily Fund completed its sixth acquisition with the closing of Alterra, a 143-unit community in San Jose, Calif. “Alterra offers a solid value-add opportunity to renovate and reposition the property so it competes with neighboring communities while capitalizing on the region’s significant employment and rental growth. Alterra is our third acquisition in California since we formed the fund last year,” said Kenneth Gladstein, Co-Chief Investment Officer of the SARES•REGIS Multifamily Fund.

The 5.1-acre gated community at 1640 La Rossa Circle was built in 1988 southeast of downtown San Jose. It is near the Almaden Expressway, Highway 87 and less than one mile from the VTA, Santa Clara’s light rail system, and Caltrain. Alterra also is close the desirable Willow Glen neighborhood as well as to major employers, including Apple, eBay and Cisco Systems. Gladstein said.

Alterra’s one-bedroom with den and two-bedroom apartments are spacious, averaging 833 sq. ft. Although the previous owner completed significant exterior and common-area renovation, the apartment interiors are original, Gladstein said. The value-add program for Alterra includes upgrading of kitchen cabinets, countertops, stainless appliances, flooring, lighting and plumbing fixtures. “Once completed, the newly renovated apartment homes will offer residents a value alternative to brand-new product coming into the market,” Gladstein said. The SARES•REGIS Multifamily Fund will continue to acquire a diversified portfolio of well-located properties primarily in coastal California, Seattle, Denver, Portland and Phoenix that fit the fund’s well-defined, value-add strategy to manage, reposition, and operate high-quality multifamily assets in select Western US markets. The Fund was launched in 2013 by SARES•REGIS Group with more than $100 million in equity commitments, giving it the ability to acquire more than $300 million in assets. SARES•REGIS Group manages a portfolio of more than 17,000 apartments units for its partners and investor clients valued at more than $2.5 billion. Since its inception in 1993, SARES•REGIS Group has acquired or developed 20,000 homes and apartments valued at more than $3.4 billion throughout California, Colorado, and Arizona. SARES•REGIS Group is also California’s leading privately held developer of LEED-certified apartments.

SARES•REGIS Multifamily Fund Acquires The Gables, 129 Apartments Near Portland; Renovation Plan Announced

SARES•REGIS Multifamily Fund completed its fifth acquisition and first of 2014 with the closing of The Gables, a 129-unit community in Lake Oswego, Ore., 8 miles from downtown Portland.

“The Gables offers a solid value-add opportunity to renovate and reposition the property to compete with other communities in this premier Portland neighborhood, while capitalizing on the region’s significant employment and rental growth. The Gables is our Fund’s first Oregon acquisition and second in the Pacific Northwest,” said Kenneth Gladstein, Co-Chief Investment Officer of the SARES•REGIS Multifamily Fund.

The Gables was built in 1991 on 6.1 acres and has mature landscaping, a tranquil setting and sweeping views of the Tualatin Valley. The property has a mix of one- and two-bedroom apartments that average 969 square feet. Many apartments have lofts and each has a washer, dryer and private patio.

In addition to the Gable’s amenities, residents enjoy exclusive access to the Mountain Park Homeowner Association, which includes a staffed clubhouse, aquatic center, tennis courts, fitness center, parks, 175 acres of common property and 8 miles of trails. “Residents are attracted by the location, excellent schools and large average unit sizes offered at the property,” Gladstein said.

SARES-REGIS plans to modernize and upgrade The Gables’ clubhouse, media room, business center and pool area. The exterior will be painted and signage and curb-appeal will be improved. Interior renovations will include new cabinetry, granite countertops and stainless steel appliances in the kitchens as well as new paint, flooring and paneled doors. “The renovation will bring the property’s common areas and all 129 units to a high level of appearance and finish that will enable the Gables to compete with adjacent properties and capture similar rents,” Gladstein said.

The SARES•REGIS Multifamily Fund will continue to acquire a diversified portfolio of well-located properties primarily in coastal California, Seattle, Denver, Portland and Phoenix that fit the fund’s well-defined, value-add strategy to manage, reposition, and operate high-quality multifamily assets in select Western US markets. The Fund was launched in 2013 by SARES•REGIS Group with more than $100 million in equity commitments, giving it the ability to acquire more than $300 million in assets.

SARES•REGIS Group manages a portfolio of more than 15,000 apartment units for its partners and investor clients valued at more than $2.5 billion. Since its inception in 1993, SARES•REGIS Group has acquired or developed 20,000 homes and apartments valued at more than $3.4 billion throughout California, Colorado, and Arizona. SARES•REGIS Group is also California’s leading privately held developer of LEED-certified apartments.

SARES•REGIS Multifamily Fund Acquires 204 Apartments In Los Angeles Suburb Of Diamond Bar

SARES•REGIS Multifamily Fund completed its fourth acquisition, purchasing The Hills of Diamond Bar, a 204-unit apartment community 27 miles east of downtown Los Angeles and served by several major freeways.

“The Hills of Diamond Bar was the fourth apartment community acquired by the fund in 2013 and the second in Los Angeles County. It’s a solid candidate for a value-add makeover and will be repositioned with extensive interior and exterior upgrades,” said Bill Montgomery, the fund’s co-chief investment officer.

The community was built in 1979 with two-story garden-style construction on 12.6 acres. Its one- to three-bedroom apartments are arranged around five courts or pod areas, Montgomery said.

Interior upgrades will include plank flooring, stainless appliances, two-tone paint, upgraded lighting and new fixtures in all apartments. A second bathroom will be added in many two-bedroom apartments.

Common areas also will undergo substantial modernization. Two play areas will be renovated and three of the property’s five pools will be closed to make way for a large second spa with adjacent outdoor kitchen and fire pit, a golf-themed club room with adjacent new putting green and meditation garden area. The leasing office will be refurbished and the business center will be repurposed as a community room and study hall.

Montgomery called Diamond Bar “an affluent community and high barrier-to-entry market that is well known for its top-rated schools.” The 57, 60 and 71freeways and I-10 provide excellent access to employment and shopping in the San Gabriel Valley, downtown Los Angeles, Orange County to the south and the Inland Empire to the east.

Previously, the fund acquired 444 apartments in Denver, Norwalk., Calif., and Redmond, Wash.

“We intend to acquire a diversified portfolio of well-located properties primarily in coastal California, Seattle and Denver, as well as Portland and Phoenix. The fund is operating under a focused well-defined, value-add strategy to purchase, manage, reposition, aggressively operate and sell high-quality multifamily assets in our target markets. The Hills of Diamond Bar is exactly the type of property we seek for our value-add program,” Montgomery said.

The fund was launched this year by SARES•REGIS Group with $114 million in equity commitments, giving the fund the ability to acquire more than $300 million in assets. SARES•REGIS Group manages a portfolio of more than 15,000 apartments units valued at more than $2.5 billion. Since its inception in 1993, SARES•REGIS Group has acquired or developed 20,000 homes and apartments valued at more than $3.4 billion throughout California, Colorado, and Arizona. SARES•REGIS Group is also California’s leading privately held developer of LEED-certified apartments.

SARES REGIS Multifamily Fund Acquires Two Properties In Growing Markets

The SARES REGIS Multifamily Fund acquired two communities totaling 300 apartments in Portland and North County San Diego and now controls eight properties totaling 1,220 apartments in California, Oregon, Washington and Colorado. The Fund was formed in 2013 with $114 million, giving it the ability to acquire more than $300 million in assets.

Both communities – Alta Vista in Escondido and Westview Heights near Portland’s ‘Silicon Forest’ – have all the attributes of top-tier communities yet are categorized as class B-plus properties. Officials of the Fund said each property fits the strategy to add value through renovation, repositioning and aggressive operation.

Interior upgrades will be focused on modernizing kitchens and bathrooms at both properties with a goal achieving significantly higher rents. However, because of their newer age the communities will require less renovation than some of the first six communities acquired by the Fund, which were built in the 1980s and ’90s.

In Portland the Fund purchased the 198-unit Westview Heights Townhomes. The development has 46 three-story buildings, all townhomes, averaging 1,448 square feet with 9-foot ceilings and large kitchens with chef islands or breakfast bars. Apartments also feature attached garages, private decks, dining areas and natural gas heating, ranges and fireplaces. Developed in 2002, Westview Heights is in the highly desirable Beaverton School District, five minutes from major employers Intel, Nike, Tektronix and Columbia Sportswear and near light rail to downtown.

“Westview Heights, which was built with a condominium conversion strategy in mind, recently underwent interior upgrades in selected townhomes, which are commanding rent premiums exceeding 12 percent above market rents,” said Ken Gladstein, the Fund’s co-chief investment officer.

Upgrades included stainless appliances and refinished countertops, wood-laminate plank flooring, new fixtures and two-tone paint. The Fund intends to improve upon this renovation plan with the addition of new kitchen countertops as well as upgrading the pool area and leasing office.

Alta Vista in the north San Diego County city of Escondido has 102 apartments in a low-density, garden-style setting with one-, two- and three-bedroom units averaging 958 sq. ft. and featuring attached garages, 9-foot ceilings and in-unit washers and dryers. With panoramic views of the valley, Alta Vista is a B-plus property that will be repositioned as one of the city’s premium apartment communities.

“Since being constructed in 2000, only 200 competing apartments have been built and there is no new product under construction. Alta Vista is close to major employers along both the I-15 corridor and highway 78. Escondido is emerging as a regional economic leader in the forefront of job development and new industries,” said Bill Montgomery, the Fund’s co-chief investment officer.

Interior renovation plans for Alta Vista include two-tone designer paint, stainless kitchen appliances, sinks and granite countertops. New euro cabinet doors with chrome pulls and upgraded lighting will be installed in kitchens and baths. Other scheduled upgrades are extended plank vinyl flooring, and upgraded horizontal blinds. Improvements will be made to the landscaping, fitness center equipment, pool, sun deck and a full leasing center makeover.

 Copyright © 2013 Sares Regis Multifamily Fund - All rights reserved.