Zander notes that Pacific Pointe was offered at an asking priceof $18.35 million and that the selling price "reflects a realisticadjustment in response to today's capital markets." He says thatthe buyer "recognized an excellent opportunity to purchase anunderperforming asset with a genuine value-add component in astrong rental location."The seller "was aware of today'sunderwriting and fundamentals and acted accordingly," Zanderadds.

Units at Pacific Pointe range from one to three bedrooms andfrom 650 sf to 1,000 sf, with in-place rents at $925 to $1,845.Common area amenities include two pools and spa, fitness center,recreation room, leasing office and more.Madonna Properties ownedthe complex for more than 25 years before the recent sale to LeggMason. The new owner is an investment fund with $300 million innational real estate holdings managed by Legg Mason Real EstateInvestors.

Zander says that Chesapeake plans to upgrade the property to"the best of its class in its South Los Angeles County submarket."Jay Gangwal of Legg Mason says that the new ownership plans torealize the full potential of the property through "an extensivecapitalimprovement plan and institutional management."