RESIDENTIAL CASE STUDY:
STONERIDGE AT DIABLO HILLS APARTMENTS
CREATIVE SOLUTIONS TO CHALLENGING MARKETS

Sares Regis, in partnership with an affiliate of Capmark, acquired this
339-unit, garden-style community in August 2001 for $55 million.
The initial strategy was to address deferred maintenance, improve
common area amenities and reposition with higher rental revenue
stream for a sale within five years. In response to the steep rent
declines of 2002-2003 following the “dot com bust,” we drew on our
knowledge of the for-sale residential market, entitlement expertise and
longstanding political relationships to devise an alternative
condominium exit strategy. Within 24 months, we obtained the
necessary condominium map entitlements and immediately sold the
asset to a converter for over $85 million, generating a project return
of 26.3%.