S
outhern California developer Sares Regis Group has surrendered its 301‑unit Waterford RiNo complex in Denver to its lender, signaling distress moving from the office market into multifamily. An affiliate of Sares Regis executed a deed‑in‑lieu of foreclosure on Wednesday for the five‑story building at 2797 Wewatta Way. The property, originally called Marq at RiNo and completed in 2012, was purchased for $123 million ($409,000 per unit) after Heitman, a Chicago‑based firm, provided a $91 million loan. The lender now holds the building.

    Sares Regis had announced plans to upgrade interiors and common areas, including the pool and fitness center, but did not respond to inquiries. While Denver’s office sector has seen numerous foreclosures—such as the Denver Energy Center, Market Center, and Civic Center Plaza (surrendered to Heitman in November 2024)—Waterford RiNo is the first major residential property to be surrendered in recent years.

    Other residential assets are also under pressure. In September, a lender with a $14 million claim began foreclosure on properties at 2617‑2667 W. Evans Ave. and 1065‑105 S. Quivas St. The Arium Apartments at 6980 Stuart St. in Westminster went into foreclosure last month.

    The Metro Denver Apartment Association reports that a surge in new supply has driven rents down and rent concessions to a 15‑year high. Coupled with elevated interest rates, refinancing has become more difficult for landlords.