SARES•REGIS Group Acquires 192-Unit Calif. Community
- Jul 11, 2013
Norwalk, Calif.—SARES•REGIS Group, which launched its multifamily fund back in March, acquired its first apartment community, Avalon at Civic Center, a 192-unit community in Norwalk, Calif., which it purchased from Avalon Bay.
“Our multifamily fund is focused on a value-add strategy which has been the core of our business model for over 20 years,” Bill Montgomery, the fund’s co-chief investment officer and president of SARES•REGIS Group’s Multifamily Acquisitions Division, tells MHN. “The goal is to acquire and reposition properties in great locations with solid ‘bones’ and contemporary floor-plans that require either refurbishment, upgrade, operational improvements or financial repositioning. Solterra fits exactly with our strategy.”
Located at 12700 Bloomfield Ave., the property will be rebranded as Solterra at Civic Center. The community, built in 1987, features a mix of one- and two-bedroom apartments and townhomes in two- and three-story Mediterranean-styled buildings.
Solterra has two pool and spa areas; a resident cabana by one pool; BBQ areas; tennis and sports courts; large unit patios or balconies and covered parking.
“Solterra is one of the newest and clearly the market leader in the Norwalk sub-market in product quality, amenities and resident lifestyle,” Montgomery says. “We saw an opportunity to improve the property to a new level with interior finish and appliance upgrades.”
According to Montgomery, renovations 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. Improvements will also be made to building exteriors, landscaping and common areas, including the leasing and fitness centers, clubroom, 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,” he says.
The property is located in central Norwalk adjacent the City Civic Center office complex so provides excellent local access to jobs and shopping. Regionally, Norwalk is central to one of Los Angeles county’s central business and industrial area’s and has solid access to employment or shopping throughout the county via several freeways with immediate access to Interstate 5.
HFF brokers Mark Peterson and Sean Deasy represented Avalon Bay in the transaction.
When SARES•REGIS Multifamily Fund was launched, the firm closed on more than $100 million in equity commitments that could be leveraged to acquire more than $300 million in assets, according to fund CEO Geoffrey 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,” Stack says. “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.”