Guardian to Buy 4,000 Apartment Units from Atherton-Newport

Guardian Management L.L.C. has agreed in principle to acquire a 4,000-unit multi-family portfolio from Atherton-Newport Investments (ANI), a firm that filed for Chapter 11 reorganization in January. Guardian will carry out the acquisition through one of its investment funds. While terms for the transaction were not disclosed, the Irvine, Calif.-based ANI acquired the apartment developments since its founding in 2001 for some $390 million total. The properties are located in Las Vegas, Miami, Phoenix and Seattle. “They’re all in troubled markets,” Tom Brenneke (pictured), president of Guardian, told CPN. “Some of the properties are working; some are not. This is basically a restructuring deal.” Brenneke went on to explain that Guardian was actually acquiring ANI’s stake in the properties. “ANI is the sponsor and managing partner,” he said. “We’re stepping into their shoes. We’re restructuring debt and equity arrangements and the partnership agreements that exist with other institutional and private investors. “We’ll put all the properties on their feet, manage them for several to 10 years and sell them. There will be residual benefits for us, the investors and the lenders at the back end.” Guardian has made a number of acquisitions this year. In September, the company acquired eight Sperry Van Ness offices located in Arizona, Oregon and Southern California. Sperry Van Ness is a large national commercial real estate brokerage. Guardian has continued to operate the brokerage as an affiliate company under the Sperry Van Ness brand. In August, Guardian acquired Waterhouse Place Apartments, a 279-unit complex in Beaverton, Ore., for $30 million, UBS Realty Investors L.L.C. served as the equity partner in that transaction. Guardian plans to spend $3 million renovating the development. Portland, Ore.-based Guardian is a privately held real estate management and investment firm. Specializing in real estate investments and property management services, the firm’s management portfolio consists of more than 130 multi-family properties, totaling approximately 12,000 apartment units located throughout seven states. Guardian owns approximately 50 percent of its portfolio.