Wednesday, February 16, 2011

Abacus Capital Group Sells $68 Million Northern California Multifamily Complex

PETALUMA, CA, – Less than a year-and-a-half after purchasing it, an investment fund advised by New York-based multifamily advisor Abacus Capital Group, in partnership with Los Angeles-based real estate private equity fund QVT Mount Auburn Capital LP, sold one of the largest apartment properties in Sonoma County for a significant gain.

 Last Friday, the firms closed on the sale of the Enclave at Adobe Creek (top left photo), a 492-unit property located in Petaluma for a sales price of $68 million. Abacus and QVT Mount Auburn purchased the property, formerly known as Lakeville Resort, in October 2009, for $52 million. 

According to Abacus Executive Vice President Greg Lyden, the investment is an excellent example of company’s “value-add” strategy it implements on behalf of its institutional investors.

“Abacus recognized that the property could be repositioned both physically and operationally to garner a greater share of the higher end of the market,” says Lyden.

Upon purchasing the property, the Abacus-led partnership immediately invested $2 million tackling deferred maintenance issues and re-branding the property with a series of strategic capital improvement programs.

 Abacus worked with its design team on to renovate the property’s clubhouse, amenities and select unit interiors. 

The new clubhouse included an upgraded fitness center, resident lounge, business center and a resort-style pool area with gas barbecues. The renovation also included a new tennis court and the introduction of a trash compactor to the property along with more energy efficient laundry facilities.

 “Our revenue this month was $980,000 (or nearly 17 percent) higher than the month we took over the property driven by higher rents and better collections.”

Lyden continues, "It is our philosophy to create value for our investors and then to harvest that value as quickly as possible. We think the Enclave is a great example of that investment philosophy in action."

Stan Jones (middle left photo)  and Phil Saglimbeni  (lower right photo) of Institutional Property Advisors (IPA), represented Abacus and QVT Mount Auburn in the Enclave sale. IPA also served as broker when the firms originally purchased the property.

Gregory Lyden, Phone: (212) 203-4962, Email:,
Stacey Corso, Phone: (925) 953-1716, Email:

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