SARES REGIS GROUP OF NORTHERN CALIFORNIA
ACQUIRES THE PLAZA INTERNATIONAL APARTMENTS

PALO ALTO, CA – August 17, 2007 – Sares Regis Group of Northern California LP (SRGNC) has acquired The Plaza International Apartments, a 44-unit mid-rise apartment community located in Palo Alto, California.  The purchase price was $11.05 million or just over $251,000 per unit.   This acquisition brings to 17 the number of Bay Area apartment communities purchased by SRGNC representing over 3,000 multifamily units at a cost of  approximately $400 million.  Santa Clara Valley National Bank financed the acquisition.

“We are very excited for the opportunity to acquire, operate and enhance this extremely well-located residential apartment community,” said Kenneth Gladstein, senior vice president of investments for SRGNC.  “This value-added investment is characteristic of the type of residential investment opportunity that SRGNC pursues and we believe strongly in the long-term potential for this apartment community based upon its superior amenities, access to top schools and its proximity to the job centers in Silicon Valley.” The property has superior grounds, a clubhouse, large circular pool and lush landscaping.

The property is located in a low vacancy submarket and offers the potential for increased rents that can be achieved through improved management and capital investment.  The firm intends to significantly renovate and upgrade the original unit interiors and common areas to be consistent in quality with neighboring properties.  SRGNC plans to begin the renovation of the property this fall with completion scheduled in 24 months.

“Over the past year we’ve seen rental rate increases of as much as ten percent in the Santa Clara County submarket and we continue to maintain a very positive forecast for the future strength of Bay Area job growth and the rental housing market,” said Gladstein.  “The property’s central Silicon Valley location and convenient access to the 101 Freeway makes it an ideal location for residents commuting to numerous Bay Area employment centers.

Sares Regis Group of Northern California and its affiliates, Regis Homes of Northern California and Regis Contractors of Northern California are regional companies based in San Mateo, California and are affiliated with Irvine-based Sares Regis Group.  One of the leading developers and managers of commercial and residential real estate in the western United States, today the companies have more than 6.5 million square feet of commercial properties valued at $500 million and over 2,800 residential units under development.  Sares Regis Group has a combined portfolio of property and fee-based management contracts valued at more than $4 billion, including 13,000 rental apartments and 15 million square feet of commercial and industrial space. Since its inception the company has acquired or developed approximately 44 million square feet of commercial properties and 19,000 multifamily and residential housing units.

SRGNC currently owns and/or manages for its clients several other apartment communities in the San Francisco Bay Area including Arches Apartments in Sunnyvale, Ironhorse Trail Apartments in Dublin, Redwood Park Apartments in Santa Rosa, and Kirker Creek Apartments in Pittsburg.

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