PETALUMA, CA-Less than a year-and-a-half after purchasing it, an investment fund advised by New York City-based multifamily advisor Abacus Capital Group, in partnership with Los Angeles-based real estate private equity fund QVT Mount Auburn Capital LP, has sold what they are calling one of the largest apartment properties in Sonoma County for a significant gain. The partnership sold the Enclave at Adobe Creek, a 492-unit property located in Petaluma for a sales price of $68 million.
Abacus and QVT Mount Auburn purchased the property, formerly known as Lakeville Resort, in October 2009, for $52 million. According to Abacus executive vice president Greg Lyden, the investment is an excellent example of company’s “value-add” strategy it implements on behalf of its institutional investors.
Abacus worked with its design team on the renovation of the property’s clubhouse, amenities and select unit interiors. The new clubhouse included an upgraded fitness center, resident lounge, business center and a resort-style pool area with gas barbecues. The renovation also included a new tennis court and the introduction of a trash compactor to the property along with more energy efficient laundry facilities.
“Abacus recognized that the property could be repositioned both physically and operationally to garner a greater share of the higher end of the market,” says Lyden. Upon purchasing the property, the Abacus-led partnership immediately invested $2 million tackling deferred maintenance issues and re-branding the property with a series of strategic capital improvement programs.
“Our revenue this month was nearly 17% higher than the month we took over the property driven by higher rents and better collections,” Lyden continues, “It is our philosophy to create value for our investors and then to harvest that value as quickly as possible. We think the Enclave is a great example of that investment philosophy in action.”
Stan Jones and Phil Saglimbeni of Institutional Property Advisors, represented Abacus and QVT Mount Auburn in the Enclave sale. IPA also served as broker when the firms originally purchased the property.
“As the multifamily sector stages a strong recovery, pricing will continue to increase, particularly in prime locations,” adds Saglimbeni. “We are excited to add additional value and guidance to Abacus’ long-term investment strategy in Northern California, where we can provide unparalleled market expertise.”
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Natalie Dolce
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.
