Palo Alto, CA - Pacific Property Company of Palo Alto has sold its 262-unit Mountain Ranch Apartments to HR Partners of San Diego, CA, for $44.5 million, including the assumption of approximately $27 million in existing debt.

The sale was brokered by Marc Renard of Cushman and Wakefield's Los Angeles office.

Constructed in 1988, Mountain Ranch features one and two bedroom floor plans and a full set of common area amenities including pool, sauna, fitness center, and a business center. Pacific had commenced an interior unit renovation program, including new kitchen cabinetry, flooring, granite counters, and crown molding realizing a monthly rental rate premium of approximately $175.

Notwithstanding the success of the renovation program, interest in the property from condominium conversion investors sparked Pacific's decision to sell. "Pacific acquired Mountain Ranch and the adjacent 338 unit Carmel Mountain in December 2002 through a joint venture with GMAC in a combined acquisition in excess of $80 million dollars. The acquisition investment strategy contemplated a five year hold period and an interior repositioning of all units. However, the property's existing condominium map and our "on the ground' assessment of current Southern California investor demand for institutional quality, well located assets indicated that an earlier exit was warranted" noted Rory Gardner, Pacific's Acquisition Manager.

The sale is the latest in a flurry of deals in Southern California by Pacific Property Company, which has acquired 1,250 units in the past three months and well over 2,300 units in the past year in addition to recently expanding its operations to include the opening of another office in Irvine. Pacific also recently hired Paul Dolk, formerly of Fowler Flanagan as Acquisition Manager for the San Diego market.

Recent Pacific Property Company investments have ranged from the repositioning of the 86-unit Home Park Village in San Diego (renamed The Ridge at San Diego) to the recent acquisition of the 312-unit, institutional quality Waterstone at Moorpark located in Moorpark. Additional acquisitions have been completed in Encinitas, Murrieta, Rancho Bernardo, San Diego/Clairemont and Sherman Oaks.

Pacific also recently acquired 100 units in the San Francisco area. Al Pace, the company's CEO, says Pacific plans to continue building its Southern California portfolio and is actively seeking further multifamily investments in the Bay Area. "Our investment platform continues to expand as is evidenced by the acquisition of Waterstone at Moorpark and the prior acquisitions of Mountain Ranch and Carmel Mountain. In the past twelve months, Pacific has acquired $135 million of institutional quality properties. Driven by locational strength. Pacific will continue to focus on those markets and multifamily strategies that will serve to benefit our shareholders and investors. To that end, we remain bullish on California and, in particular Southern California. We are actively seeking to substantially increase our investments in supply constrained markets proximate to employment centers."

Pacific Property Company is a privately owned multifamily investment company seeking to acquire attractive apartment investment opportunities throughout the West Coast, with a focus on California.