Carmel Partners Acquires Six Properties in California, Seattle and Denver for $191 Million.

Carmel continues selective investments in core markets

SAN FRANCISCO -- Carmel Partners, Inc. announced today that it has acquired six properties in three of its primary markets of Southern California, Seattle and Denver. Carmel Partners Investment Fund II, L.P., ("Fund II")

purchased Timberwood Apartments, in Aurora, CO; Skyline Park Apartments, in Kent, WA; Villa Pacific Apartments (formerly Park Lane), in Westminster, CA; One Belmar Place (formerly The Falls), in Lakewood, CO; Tustin Park Apartments (formerly Park Place), in Tustin, CA; and Piedmont Apartments, in Bellevue, WA.

Timberwood, a 1983-built, 336-unit property in Aurora, CO, offers an ideal value-add opportunity due to solid two-story construction and excellent floor plans. The property is adjacent to Fitzsimons campus, the nation's largest medical research park and Colorado's biotech hub. Carmel acquired the property for $22 million and plans to invest an additional $10.5 million in renovations. The rehab program will include high-end interior upgrades, the installation of new roofs and windows, and the addition of attractive architectural accents to building exteriors.

Skyline Park, located on the West Hill of Kent, WA, offers steady drive-by traffic, easy access to both Kent Valley and Sea-Tac employment centers, and enviable hilltop views. The 1983-built property's 192 two bedroom, two bath units set the submarket standard due to their large size (1,120 sq. ft.) and superior layout. Carmel acquired Skyline Park for a purchase price of $21,200,000. The $2.37 million capital budget includes clubhouse construction, addition of common area amenities, and unit interior renovations.

Villa Pacific Apartments offers a desirable infill location in the Westminster submarket of Orange County, near a wide array of retail and entertainment options such as Bella Terra Mall, Disneyland/California Adventure, and Angel Stadium. Excellent floor plans add to the geographic appeal of the 1963-built, 136-unit townhome property. Carmel purchased Villa Pacific for $26.35 million, approximately 60% below replacement cost. The $2.54 million renovation budget is targeted toward building a new leasing office/fitness center, updating apartment interiors, and installing in-unit air conditioning.

One Belmar Place is located in Lakewood, CO, the third largest community in the Denver metro area. The area was recently revitalized by the Belmar redevelopment, a mixed-use complex within walking distance of the property that offers shopping, entertainment, dining, and employment options. Unique floor plans, spacious layouts, and ample garage parking distinguish this 2001-built, 208-unit property from its competitors. Carmel plans to target its renovation dollars on clubhouse upgrades, curb appeal enhancement, and the addition of in-unit washer/dryers. Carmel purchased One Belmar Place for $25.5 million.

Tustin Park Apartments is located in the infill market of Tustin in Orange County. Thirty-four two-story buildings clustered around six interior courtyards house 264 units - a mixture of two bedroom one-and-a-half bath flats and townhomes. Tustin Park's solid wood and stucco construction combined with its desirable unit mix and 1969 vintage make it the perfect target for an extensive rehab program. Accordingly, Carmel has budgeted nearly $30,000/unit to build a new leasing/amenities center and install washer/dryers and new appliances. Carmel acquired Tustin Park for $42.8 million.

Piedmont Apartments boasts a premium location in the rapidly growing Seattle suburb of Bellevue, WA, where Microsoft's continuing expansion spurs strong ongoing rent growth and helps maintain the Eastside's solid tenant profile. Carmel's targeted capital improvement plan at the 396-unit, 1968-built property hinges on installing in-unit washer/dryers and updating the amenities package. Carmel bought Piedmont for $53 million.

"These six properties diversify Carmel's holdings in our core markets, and allow us to participate in pockets of particularly strong job and rent growth," said Ron Zeff, Chief Executive Officer. "They are all consistent with our value-add investment strategy and offer ideal opportunities for redevelopment."

About Carmel Partners

Based in San Francisco, Carmel Partners is a private real estate investment firm, specializing in multifamily transactions within the United States. Founded in 1992 by Ron Zeff, Carmel Partners also maintains offices in Irvine, Denver, Seattle, Washington, D.C., and Honolulu.

Carmel Partners is currently pursuing value-add apartment properties, condo reversions, ground-up developments and joint venture deals in its core markets of Northern and Southern California, Seattle, Denver, Washington, D.C. and Hawaii. For more information regarding Carmel's acquisition criteria, please contact Chris Beda, Chief Investment Officer at cbeda@carmelpartners.net.

Summary of Deals:

Name of Acquisition  >              >  Year Built  >
# of Units

Purchase Price
                     >              >              >



Timberwood           >              >        1983  >
336

$22,000,000
Skyline Park         >              >        1983  >
192

$21,200,000
Villa Pacific        >              >        1963  >
136

$26,350,000
One Belmar Place     >              >        2001  >
208

$25,500,000
Tustin Park          >              >        1969  >
264

$42,800,000
Piedmont             >              >        1968  >
396

$53,000,000
TOTALS               >              >              >
1,532

$190,850,000