A Southern California real estate firm has surrendered a large RiNo apartment complex it bought in 2021 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 301-unit Waterford RiNo building at 2797 Wewatta Way in Denver, according to public records.

The firm gave ownership to an affiliate of Chicago-based Heitman, which lent Sares Regis $91 million when the firm bought the building. Sares Regis paid $123 million, or $409,000 a unit, records show.

The five-story complex was completed in 2012 and was originally known as Marq at RiNo.

Sares Regis did not respond to requests for comment Wednesday. The company said upon buyi

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