IRVINE, CA-Sares Regis Group has launched the Sares Regis Multifamily Fund L.P., co-sponsored with Penn Square Real Estate Group in Radnor, PA. The fund has 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, who is also a Sares Regis group managing director, “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 US markets. 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 added that garden-style, mid-rise and high-rise assets will be considered. “The focused strategy of the fund, which is composed of a select group of larger institutional investors, allows for immediate deployment of capital to take advantage of numerous value-add acquisition opportunities.”
Rob Wagner, fund president and Sares Regis group managing director, added that SRG's structure as a vertically integrated company—acting as investor, manger, contractor and developer—provides experience and depth in every state of the value-add process as well as economies of scale that will benefit investor returns. “We've been operating in the western US 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.”
The fund will target eight of the nation's top-rated markets, which are in the West, according to Marcus & Millichap's 2013 National Apartment Index. 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.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
