IRVINE, CA—The Sares-Regis Multifamily Fund has acquired two communities totaling 300 apartments in Portland, OR, and North County San Diego for a price undisclosed to GlobeSt.com. The fund, which was formed in 2013 with $114 million, giving it the ability to acquire more than $300 million in assets, now controls eight properties totaling 1,220 apartments in California, Oregon, Washington and Colorado.

Both communities—Alta Vista in Escondido, CA, and Westview Heights Townhomes near Portland's “Silicon Forest”—are categorized as class-B+ properties, even though they have all the attributes of top-tier communities, according to Sares-Regis. Officials of the fund say each property fits the strategy to add value through renovation, repositioning and aggressive operation.

Interior upgrades will be focused on modernizing kitchens and bathrooms at both properties with the goal of achieving significantly higher rents. However, because of their newer age, the communities will require less renovation than some of the first six communities acquired by the fund, which were built in the 1980s and '90s.

Westview Heights, a 198-unit townhome development, has 46 three-story buildings containing all townhomes, averaging 1,448 square feet with 9-foot ceilings and large kitchens with chef islands or breakfast bars. Developed in 2002, the apartments also feature attached garages, private decks, dining areas and natural-gas heating, ranges and fireplaces.

According to Ken Gladstein, the fund's co-chief investment officer, “Westview Heights, which was built with a condominium conversion strategy in mind, recently underwent interior upgrades in selected townhomes, which are commanding rent premiums exceeding 12% above market rents.”

Upgrades include stainless appliances and refinished countertops wood-laminate plank flooring, new fixtures and two-tone paint. The fund tends to improve upon this renovation plan with the addition of new kitchen countertops as well as upgrading the pool area and leasing office.

Alta Vista has 102 apartments in a low-density, garden-style setting with one-, two- and three-bedroom units averaging 958 square feet and featuring attached garages, 9-foot ceilings and in-unit washers and dryers. With panoramic views of the valley, Alta Vista is a B+ property that will be repositioned was one of the city's premium apartment communities.

Regarding Alta Vista, Bill Montgomery, the fund's co-chief investment officer, says, “Since being constructed in 2000, only 200 competing apartments have been built, and there is no new product under construction. Alta Vista is close to major employers along both the I-15 corridor and Highway 78. Escondido is emerging as a regional economic leader in the forefront of job development and new industries.”

Interior renovation plans for Alta Vista include two-tone designer paint, stainless kitchen appliances, sinks and granite countertops. New euro cabinet doors with chrome pulls and upgraded lighting will be installed in kitchens and baths. Other scheduled upgrades are extended plank vinyl flooring and upgraded horizontal blinds. Improvements will be made to the landscaping, fitness-center equipment, pool and sundeck, and the leasing center will receive a full makeover.