Palo Alto, CA — A month after closing a $55,000,000 apartment community in Fremont, CA, Pacific Property Company ended an active first half by closing yet another property. Acquiring its fifth apartment community for the year, the two-year old firm continued its aggressive investment activity in Northern California by entering yet another new market: this time, the city of Oakland in the eastern half of San Francisco Bay. The109-unit Grand Lake Terrace Apartments located at the top of the Adam's Point area in central Oakland near Lake Merritt and downtown. Pacific acquired Grand Lake Terrace for $8.9 million. The transaction was brokered by William H. Brown of Oakland. The Company's acquisition of Grand Lake Terrace increases Pacific's portfolio of California apartment communities to over 2,700 units with a cost basis exceeding $230 million.

Grand Lake Terrace closed on June 29, 2000. The property was 98% occupied at closing with average rents of $855. According to George Dobbel, Pacific's Northern California Portfolio Manager, the property will undergo a moderate rehab and repositioning program. "Adam's Point has long been one of Oakland's preferred addresses. With the rapid rise of rents in nearby San Francisco, Oakland has become a logical choice for renters who want to be in an attractive community close to their jobs, but at more affordable price levels." Pacific intends to spend approximately $6,000 per unit on improvements to the property, mainly to upgrade and modernize unit interiors. Pinnacle Realty Management will manage the property for Pacific.

Northern California Regional Director, Steven Weilbach, comments that Grand Lake Terrace is an ideal fit for Pacific's growing portfolio of value-added apartment communities. "The property has an excellent location and is the largest building in its immediate neighborhood, offering many amenities that many of its smaller neighbors lack. Our planned improvements involve upgrading the existing interior and exterior of this particular building to attract residents to what is already a very desirable neighborhood".

In addition to its recent closing of Grand Lake Terrace, Pacific is also under contract to purchase another 250+ units valued at over $30 million in California during the third quarter of 2000. Investments closed or committed to through the end of the third quarter of 2000 total approximately $150 million.

Pacific Property Company is a privately owned multifamily investment company seeking to acquire attractive apartment investment opportunities throughout California and the Pacific Northwest.