GARDEN GROVE, CA-In its second Southern California acquisition in recent months, JB Matteson Institutional Capital Partners of Redwood City has acquired the 245-unit Waterstone apartment complex for $46.1 million and plans to spend $4.6 million on improvements at the complex. The buyer, an affiliate of the Matteson Cos. that provides investment management services to institutional investors, acquired the asset from Palo Alto-based Pacific Property Co. in a direct, off-market deal.

The Waterstone, which sold for $189 per sf, is at 9155 Central Ave. and was 95% occupied at the time of the sale. The property was built in 1968 and features large units on a low-density site.

John Bellack, managing partner at JB Matteson, comments that the acquisition "is consistent with our strategy to acquire infill properties in high-growth, supply-constrained markets, at a discount to replacement cost." In addition, Bellack says, JB Matteson likes the long-term prospects for Southern California multifamily investments.

The improvements that Matteson plans for the property include renovating the clubhouse, the leasing office and the common areas. Upgrades to the unit interiors will include adding washers and dryers to the units.

The acquisition of the Waterstone complex follows JB Matteson's recent purchase of four multifamily buildings in Los Angeles County for $22 million. In that deal, the company bought four Mid-Wilshire apartment buildings totaling 199 units, with plans to invest $4 million in a value-added play.

JB Matteson is a new affiliate of the Matteson Cos. that was launched this year. The Matteson Cos., which began in 1964, are a group of privately held, affiliated real estate investment, development and management entities with operations throughout the West.