Southern California real estate firm surrenders Waterford RiNo apartment complex to lender

A Southern California real estate firm has surrendered a large RiNo apartment complex it bought in to its lender indicating that distress seen for years in the office sector is starting to spill over into the multifamily sector An affiliate of Sares Regis Group executed a deed-in-lieu of foreclosure Wednesday for the -unit Waterford RiNo building at Wewatta Way in Denver according to residents records The firm gave ownership to an affiliate of Chicago-based Heitman which lent Sares Regis million when the firm bought the building Sares Regis paid million or a unit records show The five-story complex was completed in and was originally known as Marq at RiNo Sares Regis did not respond to requests for comment Wednesday The company reported upon buying the building that it planned to make upgrades to unit interiors and common areas including the pool and fitness center Denver s office sector has seen numerous foreclosures and deeds-in-lieu in new years for buildings such as downtown s Denver Capacity Center and Industry Center Civic Center Plaza at Broadway was surrendered to Heitman in November Related Articles Brookfield Properties sells downtown Denver office towers at M loss Average US long-term mortgage rate ticks up to after four straight weekly declines Denver-based Ownli looking to reprogram home purchasing by using AI Metro Denver housing arena s more leisurely pace may be here to stay Property deal involving Lakewood Jeffco Schools moves forward after judge lifts injunction But Waterford RiNo appears to be the first such transaction in up-to-date years for a major Denver residential property A handful of smaller residential properties have landed in earlier stages of distress in new weeks A lender owed million initiated foreclosure proceedings on - W Evans Ave and - S Quivas St in Denver in September records show The Arium Apartments building at Stuart St in Westminster landed in foreclosure last month Denver landlords have been squeezed in current months by an influx of new supply which has pushed rents down and rent concessions to a -year high according to the Apartment Association of Metro Denver The sector is also affected by the high interest rates that have touched all sectors of real estate making it harder to refinance Read more from our partner BusinessDen Get more business news by signing up for our Economic system Now newsletter