SARES REGIS GROUP OF NORTHERN CALIFORNIA
ACQUIRES HIDDEN WILLOWS APARTMENT

SAN JOSE, CA – November 30, 2007 – Sares Regis Group of Northern California LP (SRGNC) and an investment client managed by BlackRock has acquired Hidden Willows Apartments, a 112-unit garden-style apartment community located in San Jose, California.  The purchase price was $31 million or just over $270,000 per unit.   This acquisition brings to 18 the number of Bay Area apartment communities purchased by SRGNC representing over 3,000 multifamily units at a cost of approximately $430 million.  This deal marks SRGNC’s first residential acquisition with BlackRock who provided the joint venture equity for the acquisition along with a bridge loan. (no bank?)

“Similar to most of the multi-family investments SRGNC pursues, this acquisition provided the opportunity to acquire an under-managed property in a desirable submarket that is expected achieve above average rent growth,” said Kenneth Gladstein, senior vice president of investments for SRGNC.  “Through an aggressive renovation and repositioning of the property we expect to attain significantly higher rents.” Over the next two years SRGNC intends to renovate all the unit interiors including the addition of washer/dryers, reconfigure the existing leasing office to incorporate a fitness facility and enhance the property’s “marketing window” along the streets it fronts. 

Hidden Willows was built in 1979 and is located in the historic Willow Glen neighborhood of San Jose with access to the light rail system and all major Silicon Valley highways.  The property has beautifully manicured grounds, a heated swimming pool and spa and unique Mediterranean architectural details.

Sares Regis Group of Northern California and its affiliates, Regis Homes of Northern California and Regis Contractors of Northern California are regional companies based in San Mateo, California and are affiliated with Irvine-based Sares Regis Group.  One of the leading developers and managers of commercial and residential real estate in the western United States, today the companies have more than 6.5 million square feet of commercial properties valued at $500 million and over 2,800 residential units under development.  Sares Regis Group has a combined portfolio of property and fee-based management contracts valued at more than $4 billion, including 13,000 rental apartments and 15 million square feet of commercial and industrial space.  Since its inception the company has acquired or developed approximately 44 million square feet of commercial properties and 19,000 multifamily and residential housing units.

BlackRock is one of the world’s largest publicly traded investment management firms.  As of June 30, 2007, assets under management were $1.30 trillion.  The firm manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investments products.  Headquartered in New York City, the firm has approximately 5,000 employees in 18 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East. 

SRGNC currently owns and/or manages for its clients several other apartment communities in the San Francisco Bay Area including Arches Apartments in Sunnyvale, Ironhorse Trail Apartments in Dublin, Redwood Park Apartments in Santa Rosa, and Kirker Creek Apartments in Pittsburg.

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