Palo Alto, CA—Pacific Property Company re-entered the Northern California apartment market in 2005 by acquiring the 124-unit Alexan Villa Del Sol Apartments in Sunnyvale, CA in a direct deal with national developer, Trammell Crow Residential. The seven-year old California-based multifamily investment firm paid $31.1M for the property. The transaction represents Pacific first new property acquisition in the San Francisco Bay Area since April 2003.

In a related move, Pacific continued the growth of its Seattle portfolio with the acquisition of the 210-unit Park Place By The Woods Apartments in Tukwila, WA. Pacific paid $13.3M to acquire the property from a locally-based private partnership. The transaction was brokered by Tim Campbell of Pinnacle's downtown Seattle office.

Pacific's Chief Investment Officer, Steven Weilbach, detailed the firm's investment strategy: "Both markets, Northern California and Seattle, are in the early stages of recovery and both acquisitions represent market recovery investments. Based on our research, both markets will experience increasing employment and rent growth over the next three to five years that will drive income growth at each asset. Villa Del Sol is a newer, core-quality asset that Pacific intends to be a longer-term hold, while Park Place is a near-term value-added investment. Despite differing asset strategies, both investments will ultimately be driven by improving macro-market fundamentals."

Alexan Villa Del Sol was completed in 2001 and is located in the San Francisco Bay Area-suburb of Sunnyvale, in the heart of Silicon Valley. The property is proximate to numerous high-tech and related employers and is walking distance from both the re-developed downtown Sunnyvale and CalTrain. Alexan Villa Del Sol is one of the highest quality assets in the area with Class A interior appointments, including washer/dryers and air-conditioning in all units and an extensive amenity package including a large clubhouse/leasing office, swimming pool, spa, business center and gated, underground garage parking. Pinnacle Realty Management, which manages close to 2,000 units for Pacific in Northern California, will provide property management services for the asset.

Park Place By The Woods was built in 1979 and is located in the Seattle-suburb of Tukwila at the south end of King County. The property is centrally located between two major employment centers, the Sea-Tac International Airport and the Southcenter Mall. The property offers a mix of studio, one- and two-bedroom units in a low-density setting of two- and three-story, wood-sided buildings. As one of the larger properties in its submarket, Park Place offers an extensive amenity package including a detached leasing office/clubhouse with weight room, sauna and tanning bed, swimming pool and tennis court. Pacific plans to spend approximately $500K to complete minor interior and exterior upgrades to the property. Alliance Residential, which manages a number of properties for Pacific in California, will manage the asset for Pacific.

Pacific was an aggressive buyer in Northern California in its early years, acquiring over 3,000 units between 1998 and 2001. Following the economic decline in Northern California brought on by the demise of the dot-com industry and 9/11, Pacific moved its investment focus to Southern California. Similarly, Pacific closed its Seattle office in 2002. Since that time, Pacific has been evaluating both markets on an on-going basis waiting for the right time to re-enter. Late in 2004, Pacific made the call that each market had hit bottom. Going forward, Pacific is forecasting revenue growth in targeted Northern California and Seattle submarkets to be over 5% for the next several years and is planning to participate aggressively in each market. 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.