Los Angeles, Calif. - West Coast multifamily investor Pacific Property Company announced today the sale of The Villas at Tustin at 2414 North Tustin Ave in Santa Ana to a Northern California real estate company, for $48.5 million. The transaction represents Pacific's largest apartment sale since its inception in 1998.

Sold to Acacia Capital Corp. of San Mateo, California, the Villas at Tustin was acquired by Pacific in November 2000. The 406-unit apartment community was significantly improved as Pacific successfully executed a $2.5 million renovation, by adding new street frontage, monument signage and remodeling the office, fitness center and clubhouse. Pacific made repairs, painted the building facades and redesigned the landscaping throughout the property. In addition, each apartment home received all new interiors.

Pacific raised occupancy to 96 percent with average rents for the two-bedroom apartments at $1,320 monthly.

Pacific's Southern California Managing Director Phill Shuster managed the sale of The Villas at Tustin for the Palo Alto-based investor and its lender and joint venture partner in the investment, GMAC Commercial Mortgage. The brokers involved were David Casper and Bruce Furniss of Hendricks & Partners.

"The purchase of The Villas at Tustin and subsequent sale two and a half years later represents a typical investment for Pacific -- a multifamily community that needed major renovation and is near high-paying jobs and expensive single-family homes," said Mr. Shuster. "The buyers acquired an improved and repositioned long term asset," he added.

The disposition comes on the heels of three multifamily property sales in the Los Angeles area, which combined, sold for $34 million.

Earlier in March Pacific sold the 168-unit, all one-bedroom Summerview Apartments in Sherman Oaks to Rockland Properties of Hermosa Beach, CA for $16.8 million. In February, Pacific sold Waterstone at Pasadena, an 84-unit garden style community to Kan Investments Ltd, of Monterey Park, CA. for $10.6 million. Late last year Kan Investments Ltd. also purchased the 42-unit San Marino Heights from Pacific. Located in South Pasadena, CA. the property traded for $6.43 million.

Other recent investment activity by Pacific includes the January, 2003 purchase of the 83- unit Rosewood Apartments in West Los Angeles and the purchase of 600 apartment homes in San Diego last December. The three transactions totaled $90 million.

Pacific Property Company was founded five years ago by President and CEO Alfred Pace and opened its Los Angeles office in 1999. The firm recently expanded its commitment to Southern California, opening an Irvine office in August, 2002.

Based in Palo Alto, Pacific Property Company is a privately-owned multifamily investment company which buys and sells apartment communities throughout California and the Pacific Northwest. 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.