Irvine, CA - Pacific Property Company re-enters the Orange County market by purchasing the 245 unit Rancho Valencia apartment community from Morgan Stanley for $37,450,000. Located in the North Orange County city of Garden Grove, the purchase represents one of approximately ten Orange County assets over 100 units to trade hands this year.

Pacific's Irvine based Acquisition Manager, Aaron Pacillio described the appeal of the investment, "The asset's North Orange County location and the fact that there are very few deals that trade hands in this closely held market initially drew our attention to the deal. Upon further examination it became clear that we were dealing with a very unique asset which had a low density feeling among the one and two story buildings, large park-like open spaces, multiple pools, split levels, fireplaces, vaulted ceilings, garages and average units approaching a thousand square feet. It was obvious that Rancho Valencia represented the closest thing to single family living among its' peers."

"Furthermore, the sub-market exhibits exceptionally strong investment fundamentals, with no new units coming online in the city, tight occupancies in the high nineties and Orange County housing prices that have soared out of reach for most renters. The property should benefit immediately from incremental rent increases available from minor aesthetic repositioning, but also through long term rent growth intrinsic in such tight market conditions."

The purchase of Rancho Valencia marks the second significant acquisition by Pacific's Irvine Office. In August, Mr. Pacillio closed Baywood Villas, a 628 unit property located in Corona, California. Pacific purchased Baywood Villas on a direct basis from Astani Enterprises of Beverly Hills, California for $62.5 million, which equates to $103,821 per unit or $135 per foot for a fully amenitized community that was completed in 1990.

The Rancho Valencia transaction represents one of over a dozen successful joint-venture partnerships, totaling over $500 million with GMAC Commercial Mortgage.

The property was constructed in phases beginning in 1967 and will be managed by Alliance Residential. The seller's was represented by Sean Deasy and Ray Eldridge of CB Richard Ellis.

Pacific is a privately held multifamily investment firm. Since its founding in 1998, the firm has closed over fifty multifamily investments totaling 10,000 units and $1 billion dollars. Headquartered in Palo Alto, California, Pacific has regional offices in Los Angeles and Irvine, California. Target markets include California and the state of Washington. Pacific will consider all types of multifamily investments from the most challenging properties to new developments.