Zander explains that MG is familiar with the local West Covinamarket, was seeking an exchange property, has an existingrelationship with the seller and had the capability of securing newdebt. He notes that the buyer obtained new Freddie Mac debt with afive-year interest-only feature and a lifetime cap of 6.75%.

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The Atrium at West Covina is at 1829-1841 East Workman Ave. andwas 93% leased at the time of the sale. The seller was Palo Alto,CA-based PPC AVF III, an affiliate of Pacific Property Co. of PaloAlto.

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The complex, situated on 4.7 acres just north of the 10 Freeway,features units ranging from one to three bedrooms and measuringfrom 830 square feet to 1,465 square feet. Zander, who brought theAtrium to market at an asking price of $20 million, tellsGlobeSt.com that the purchase price "reflects a realisticadjustment in response to today's capital markets."

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Zander says that the acquisition provides the buyer with anexcellent opportunity to acquire one of the larger assets in theWest Covina market, "with a reasonable value-add component in astrong location." Even considering recent changes in the employmentpicture and the economy, the Atrium's location near the 10 and 210freeways offers "strong demand and good fundamental long-termgrowth prospects," Zander says.

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The new owner plans substantial interior improvements, includingnew cabinets and countertops, in addition to exterior capitalimprovements such as replacing the plumbing and roofing. Many ofthe units had been renovated by previous ownership with upgradesincluding new appliances, flooring, painting and lighting.

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Zander is currently marketing two other San Gabriel Valleyapartment buildings for the Pacific Property, which bought theAtrium in 2004 in a portfolio acquisition. The other two propertiesnow on the market are the 140-unit Waterstone on Sunset and the250-unit Riverstone/Brookstone.

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