San Francisco, CA (January 2024) – Polaris Real Estate Partners (“Polaris”) is pleased to share the achievements of 2023 and outline its plans for 2024. The past year included team expansion and portfolio income growth. We remain committed to enhancing residents’ lives through social impact programs and community initiatives.
Highlights of 2023
Polaris acquired The Enclave, a 90-unit apartment community in June 2023. Across the portfolio, total collected income increased by 6.5% in 2023. The company renovated 108 units during the year as well. Portfolio-wide, total collected income increased an average of 23.2% for properties owned at least 2 years.
In 2023, Polaris welcomed James Choi as the Chief Financial Officer (CFO) and Stanley Lee as Accounting Manager. With over two decades of experience in various real estate asset classes, James and Stanley bring a wealth of knowledge in operational and developmental aspects from their time in publicly traded real estate companies. The team further strengthened with the addition of Shanika Arboleda as Senior Accountant, and Paula Dela Rosa as Staff Accountant. Together, our enhanced and seasoned accounting team is well positioned to oversee all financial matters at both the corporate and property levels.
The company has also launched Polaris Community Foundation, 501(c)3nonprofit entity tasked with creating a merit-based scholarship program to support student residents in their pursuit of higher education. In 2023, the Foundation successfully granted 10 scholarships and we remain committed to enriching the lives of our residents through community improvement efforts, such as partnering with the South Dallas Employment Project and GoodWill Center to open an employment service center at 480-unit Pacifica. Throughout the summer of 2023, we sustained our multi-year collaboration with YMCA to deliver water safety lessons for both young children and adults. Our efforts resulted in assisting 70 children in acquiring essential swimming skills through our free swim lessons. Additionally, the company organized its 9th annual backpack giveaway, distributing over 1,000 backpacks filled with school supplies to children residing at our communities. In further support of our tenants, Polaris successfully executed Thanksgiving food and TV giveaways towards the end of the year.
Looking Ahead to 2024
Polaris has strong growth plans for 2024. Economic challenges, driven by inflation and interest rates, have created a delicate balance for American renters between housing costs and other necessities. While traditional value-add strategies face challenges, Polaris plans to capitalize on market dynamics. The company aims to leverage the influx of new renters, the shortage of available rentals, and the overdevelopment of certain property classes to acquire high-quality, newer assets at discounted rates. Polaris will focus on investments with exceptional performance potential in strong growth locations across the mid-western, central, and mid-eastern U.S. states.
Ron Abta and Travis Pacoe, General Partners of Polaris, expressed optimism about the industry and the economy despite the challenges of 2023. “We look forward to collaborating with our partners and stakeholders on current and future investments,” they said.
Specializing in multifamily investment in the continental United States with 4,693 units under ownership and management, Polaris’ senior management team has an average of 25 years of commercial real estate experience. As of December 2023, Polaris’ average net return to its investors on its 16 properties sold was 132%, or 29% annualized with an average investment period of 4.4 years. Polaris, through its social impact programming, remains deeply committed to making a positive impact in the communities it serves while seeking individual properties or portfolios of 200 to 1,000 units in its targeted areas.