SAN JOSE, CA-Sares Regis Group along with its partner, Cigna Realty Investors, has closed the sale of Bella Villagio Apartments, a 231-unit luxury apartment community here. The multifamily apartment complex was sold for $54 million to Essex Property Trust.
Sares Regis Group acquired the property in June of 2009 from a private seller at a very difficult time in both the property and capital markets, according to a prepared statement. “A tremendous amount of value was created at the time of the acquisition through our ability to move quickly and provide the seller with certainty of execution in a market where few other transactions were closing,” says Kenneth Gladstein, senior vice president of Sares Regis Group.
Gladstein continues that “As a result of our very attractive cost basis, positive rent growth and a significant improvement in the investment market, we were able to sell the property to a public REIT and achieve pricing equivalent to our five year business plan in only 15 months.” Notwithstanding its opportunistic sale of Bella Villagio, Sares Regis Group will continue to aggressively pursue the acquisition of multifamily properties throughout the Western US, according to the release.
“We believe that a recovering economy combined with strong demographic trends and a limited supply of new product will produce a significant increase in operating revenues and in the value of quality multifamily property over the next several years,” Gladstein adds. “The recent dislocation in both the property and capital markets should provide other great investment opportunities over the next 12 to 24 months and Sares Regis Group will remain focused on the deployment of capital in our premier west coast markets into properties that can provide attractive risk adjusted returns.”
Scott Bales of Atlas IREG in San Francisco represented both the buyer and seller in the transaction.
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Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
