SARES-REGIS Multifamily Fund L.P. recently announced it has acquired Arabella, a 156-unit apartment community in Denver, Colorado, from Fairfield Properties.
Located at 4982 South Ulster Street, Arabella is situated in the center of the Denver Tech Center, an 850-acre business hub south of downtown which features over 25 million square feet of office and retail development.
“Denver is among the nation’s top markets for housing and rent growth, and Arabella will benefit from the substantial upgrades that are planned, the first since it was built in 1980,” Bill Montgomery, the fund’s co-chief investment officers, says. “Over the years it’s become a fish out of water compared to the surrounding metropolis. Our renovation program will enable Arabella to take advantage of its prime location.”
Arabella features a mix of studio, one- and two-bedroom apartments in three-story garden-style buildings. The community features numerous amenities including a fitness center, a swimming pool and a resident business center.
As stated by Montgomery, numerous improvements are planned across the property. These will include adding washers and dryers to 42 apartments, ground-level patio expansions, landscaping improvements, and renovation of common areas. Arabella will also benefit from the addition of a spa, an outdoor kitchen/barbeque area and a dog-washing station.
“This is a significant renovation project needed to reposition Arabella to compete in its submarket,” Montgomery added. “We are confident that with the work completed and a solid new management team in place we will be able to achieve a significant return on cost for our investors.”
SARES-REGIS Group launched the fund this year with $114 million in equity commitments, giving it the ability to acquire over $300 million in assets. The group manages a portfolio of more than 15,000 apartment units, valued at over $2.5 billion.
“We intend to acquire a diversified portfolio of well-located properties primarily in coastal California, Seattle and Denver, as well as Portland and Phoenix,” Montgomery says of the acquisition. “The fund is operating under a focused well-defined, value-add strategy to purchase, manage, reposition, aggressively operate and sell high-quality multifamily assets in our target markets. Arabella is the “poster-child” of exactly the type of property we seek for our value-add program.”
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