Sares-Regis Buys 296 Units

COSTA MESA, CA-Sares-Regis Group of Irvine, in partnership with Invesco Realty Advisors of Dallas, has acquired that 296-unit Mesa Verde Villas apartment development here from the Mesa Verde Villas partnership, longtime owner of the complex.

Sares-Regis says the Mesa Verde partnership, in turn, is acquiring an apartment project in the Denver area an arrangement engineered by the Irvine group. Financial terms of the deals were not disclosed.

George McNee, VP of the Multifamily Acquisitions and Investments Division at Sares-Regis, explains that the transaction was challenging because, since the sellers had owned the property for many years, the depreciation on the asset was diminishing to a level where it made sense to dispose of the property if the seller could acquire another investment. McNee says Sares-Regis researched other markets to find a suitable property in which the seller could execute a 1031 Exchange. The seller of the local property is now under contract to purchase the Denver property in the next 30 days, McNee says.

The local complex is at 1555 Mesa Verde Drive East. It borders the Costa Mesa Golf & Country Club and is near both Harbor Boulevard and the 405 freeway. The complex consists of a mix of four-, one- and two-bedroom floor plans, 81% of which are townhomes, ranging from 750 sf to 1,235 sf. Monthly rents range from $1,070 to $1,465. Amenities include full-size washer-dryer hookups, central air and heat, and fireplaces. Common area features include a clubhouse, pool, spa, fitness center and tennis courts. Coincidentally, Mesa Verde Villas was developed in 1975 by Regis Homes, which merged with the Sares Co. in 1993 to form the Sares-Regis Group.

The new owners plan to extensively renovate the property. Each unit will be upgraded with new floor coverings, cabinets, countertops, appliances, fixtures and paint. Additionally, improvements will be made to the clubhouse, pool, spa and landscaping which includes signature water features throughout the grounds.