SAN JOSE, CA—Sares Regis Group of Northern California has purchased the vacant Emerald Glen Condominium Homes for a reported $11.3 million here.

The complex is a four-story stucco building with 46 completed condominium units and 77 parking spaces. Project amenities include an on-site spa, landscaped outdoor courtyard, multiple BBQ facilities and an adjacent public park. The company bought the property from a lender that foreclosed on the property in 2012.

Sares is renaming the property Aviara, and plans to market the complex as apartments. The company is also installing new appliances, floor coverings and window treatments in all units as well as the build out of a leasing office.”

Berkadia Commercial Mortgage provided debt financing. Kenneth Gladstein, chief investment officer at Sares, says the firm plans to refinance a longer-term loan upon stabilization of the asset. “We believe that with our acquisition price well below replacement cost, this investment will generate very attractive cash flow while also providing significant appreciation potential over a longer holding period,” he says.