Palo Alto, CA—Pacific Property Company entered the Seattle apartment market in 2005 by acquiring the 98-unit Aspenwood Apartments in Bellevue, WA from a private seller. The seven year old California-based multifamily investment firm paid $8.9M for the property. Pacific plans a $1.0M repositioning of the property that will include a name change and a comprehensive interior and exterior renovation. Pacific was represented in the deal by Kenny Dudunakis of Hendricks & Partners' downtown Seattle office.

Managing Director of Investments, Steven Weilbach, detailed Pacific's interest in the property, "Aspenwood is a perfect fit with our value add investment strategy. The location is excellent and the basic features of the property are solid and will be readily complemented by our planned upgrades. In the short term, once our renovation is completed, we will be offering a fresh product in a highly desirable area priced well below the top of the market. As this profile fits the highest demand segment in the area, we expect the renovated asset to be well-received by prospective residents. In the long term, the surrounding area is expected to produce strong population and job growth that will support additional appreciation for the investment."

Originally constructed in 1968, with a second phase added in 1985, Aspenwood is well-located in the upscale Seattle Eastside suburb of Bellevue. The property is minutes from the primary Eastside employment centers of downtown Bellevue and Redmond, which include Microsoft's world headquarters. The property is low-density with two- and three-story wood frame construction and offers some of the largest units in the area, including over 50% town-home units that are unique to its submarket. The property also offers ample parking, leasing office, on-site laundry facilities, swimming pool and a children's play area. Pinnacle Realty Management Company, which manages over 20,000 units in the Seattle area, will manage the asset for Pacific.

Pacific completed its first acquisition in Northern California in 1998 and quickly followed by establishing a Southern California presence in 1999. Two years later, the firm purchased its first assets in the Portland, OR market. After following the Seattle market closely for the last several years and holding off on making investments during the sluggish years up through 2004, Pacific decided that the time was right in 2005 to enter the market. Through increasing occupancies, declining concessions and rising rents spurred by positive job growth, Pacific is forecasting revenue growth in targeted Seattle submarkets to be over 5% for the next several years and intends to purchase additional properties in the area throughout the year.

Overall during 2005 Pacific plans to acquire an additional $300 to $400 million of value add and core assets throughout California and the Pacific Northwest.

Pacific Property Company is a privately owned multifamily investment company seeking to acquire attractive apartment investment opportunities throughout California, Washington and Oregon. Since its inception in 1998, Pacific has acquired over $1 billion in multifamily assets representing nearly 10,000 apartment homes.