FULLERTON, CA-Security Properties Inc. of Seattle has acquired its second apartment complex in the vicinity of Cal State Fullerton with its acquisition of the 248-unit Nutwood Apartments for $41 million. The multifamily investment specialist, which bought a 147-unit complex near the CSF campus in 2007, acquired the Nutwood property from the Dhont Family Foundation.

The Nutwood complex, built in 1975, is situated on a 6.5-acre site at 2404 Nutwood Ave. and consists of 24 three-story buildings that feature 174 one-bedroom and 74 two-bedroom apartments. The location is near five colleges and universities with combined enrollments of more than 60,000, including Cal State Fullerton, which is within walking distance.

As it did with its earlier purchase in the vicinity, Security Properties plans a substantial interior renovation that includes the addition of washers and dryers, microwaves and refrigerators as well as replacement of existing appliances, countertops and cabinet doors. The exterior renovations will include painting, landscaping and expansion of the weight room and pool area.

Lonnie Nadal, director of acquisitions for SPI, cites the Orange County apartment market fundamentals as one of the factors that made the deal appealing to the Seattle firm. He also cites Fullerton's position as a major employment center as well as its location relative to Los Angels and the Inland Empire, which have led to a constant growth in population and jobs.

Financing for the Nutwood deal was arranged by Capmark, with Capmark providing the equity and Prudential supplying the debt. The Nutwood acquisition follows Security Properties' $23-million purchase of the 147-unit Boondocker Apartments in 2007.

The Boondocker property, at 600 Langsdorf Dr., is adjacent to the main campus of Cal State Fullerton. Security's business plan there includes substantial upgrades of individual units as well as the addition, expansion and improvement of common area facilities.