IRVINE, Calif., — 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.
Contacts: Zoe Solsby, SARES•REGIS Group Corporate Communications Manager