Sares Regis raises USD328m for value-add multifamily fund

Sares Regis has held the final close of the Sares Regis Multifamily Value-Add Fund III raising over USD328 million in total equity commitments. Utilising leverage, the Fund will seek to acquire approximately USD1 billion of assets in its target markets.

“We greatly appreciate the continued support and confidence of our existing investment partners and welcome several new institutional investors who participated with us in this exciting closing,” says Ken Gladstein, the Fund’s President. The diversified investor base for the Fund includes insurance companies, public pension funds, and wealth managers, in addition to endowments and quasi-governmental entities, primarily from the United States and Asia. Approximately two-thirds of the investors in the Fund have invested in prior Sares Regis funds. “Our value creation strategy continues to offer attractive risk-adjusted returns, especially at this later stage of the real estate cycle,” he added.

Sares Regis formed the Fund to capitalise on attractive multifamily fundamentals in the Western United States, as well as the potential to create value via the renovation and repositioning of well-located Class-B properties by leveraging its vertically integrated operating platform. The Fund targets assets in Northern and Southern California and the metropolitan areas of Seattle, Portland, Denver, and Phoenix.

 

To date, the Fund has acquired six assets that, in aggregate, represent approximately 44 per cent of the Fund’s total commitments. “We are pleased with the current portfolio composition and have another property that we expect to close in the first quarter of 2020,” said Bill Montgomery, the Fund’s Chief Investment Officer. “We continue to identify and pursue compelling investment opportunities in strong markets that will benefit from the enhancements we create and are expected to generate attractive cash flow and appreciation potential.”

 

Accord Capital Partners LLC served as exclusive global capital advisor to Sares Regis.