Sares-Regis Closes $114M Fund

LOS ANGELES—Sares-Regis Group has purchased Pine@Sixth, a 158-unit multifamily property in Long Beach. The purchase is the ninth and final purchase made with capital from its $114 million Fund I. The purchase price for this individual sale as well as the seller were undisclosed.

The nine properties purchased with Fund I are sprinkled throughout the West Coast in Seattle, Portland, San Jose, Los Angeles, San Diego and Denver. According to Bill Montgomery, the fund's co-chief investment officer, the properties were purchased over an 18-month period and have a total capitalization of $329 million. The properties have a total of 1,377 units, and all have a value-add or repositioning component, which is part of the fund's strategy.

Pine@Sixth further fits in with this strategy because it is located in the burgeoning neighborhood of Long Beach, within walking distance of the city center and local retail shops. The property has a mix of studio, one- and two-bedroom apartments, and the building features a garage and more than 8,000 square feet of ground floor retail space.

Sares-Regis' planned interior improvements include the addition of new cabinet facings, stainless appliances, quartz countertops as well as solid-surface plank vinyl flooring, two-tone paint and washers and dryers. The investor also plans to add fire-pits, water features, landscaping improvements and expanded outdoor kitchen space to the building to create a social and communal environment. There is no information on the capital investment it plans to make in the property, and it did not respond to a request for comment.

Long Beach is definitely in the middle of a gentrification, with multifamily and office investors finding opportunities. Last year, San Diego-based Parallel Capital Partners bought Shoreline Square, a 383,652-square-foot, 20-story class-A office property in Long Beach that overlooks the Queen Mary, for $110 million.