Los Angeles, Calif. - West Coast multifamily investor Pacific Property Company announced today the purchase of a Los Angeles area apartment community and the sale of another in La Habra, Orange County.

Pacific Property made its first foray into the highly desirable West Los Angeles submarket by purchasing Rosewood Apartments, an 83-unit property. The company's acquisition of Rosewood Apartments, located along Rose Avenue, pushes Pacific Property's portfolio of Southern California apartment communities to 1,722 units, even after the nearly concurrent sale of Slate Creek apartments in La Habra. The multifamily investment powerhouse bought and sold more than $115 million of apartments in Orange and Los Angeles counties for the month of December. Moreover, it appears the firm is not slowing down. According to Southern California Managing Director Phill Shuster, Pacific has another $90 million of properties under contract for sale in addition to considering several new investment opportunities.

"We are on a roll. While we remain concerned about pricing levels in Southern California, underlying fundamentals look good. We expect the national economy to continue its slow recovery, and Southern California should benefit. In general, job growth and immigration into Southern California will continue to stimulate the need for affordable, entry level apartment housing," said Mr. Shuster.

Pacific Property sold the 242 unit Slate Creek apartments to Decron Management for $25.5 million. John Walsh of Marcus and Millichap brokered the transaction on behalf of Pacific Property. Acquired by Pacific Property in May, 2000, the firm made several enhancements to the property and improved net operating income.

Pacific Property acquired Rosewood Apartments from a local partnership for $9.8 million. Ms. Karoline Sauls of Hendricks & Partners brokered the transaction. The sale and purchase agreements were completed toward the end of 2002.

"The Rosewood acquisition is a solid addition to our Southern California portfolio and demonstrates our aggressive acquisition commitment to compelling investments," commented Southern California Managing Director Phillip Shuster. "West Los Angeles is a prime Southern California location and central to numerous employment centers in Los Angeles. The Rosewood transaction is about as infill as you can get. With replacement costs topping $225,000 per unit for similar product, we find investments such as Rosewood very enticing."

Pacific Property has budgeted in excess of $700,000 to renovate the property. Stratus Real Estate will manage the apartments for Pacific Property.

Other recently acquired Pacific Property investments include two multifamily communities in suburban San Diego, from MetLife Inc. The 600 apartments in Rancho Bernardo represent the largest single investment made by Pacific Property since the company was founded four years ago. Pacific Property opened its Los Angeles office in 1999 and Irvine office in 2002.

Based in Palo Alto, Pacific Property Company is a privately-owned multifamily investment company seeking to acquire attractive apartment investment opportunities throughout California and the Pacific Northwest. Pacific's acquisition of this property increases its portfolio of apartment communities to over 4,082 units. Since its inception in 1998, Pacific has become one of California's most active investors, acquiring and repositioning more than 6,000 apartment homes totaling in excess of $600 million.