"In good times, we build assets. In challenging times, weacquire and upgrade them," says president Steven Fifield. "Thisdefinitely counts as a challenging time. However, because of thestate of the current real estate market, there will be someoutstanding opportunities in 2010."

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FRP IV is made up of a number of institutional partners. Thefund will invest up to $200 million cash to purchase up to $600million in apartments throughout 2010. Through the fund, Fifieldexpects to add more than 5,000 units to its current holdings.

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Fifield tells GlobeSt.com the company is looking at "both urbanand suburban (properties) but mostly 200- to 500-unit buildings orcomplexes. Most of our acquisitions will be between $20 million to$50 million."

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While previously Fifield focused on the Southeast, Southwest andChicagoland area, the new fund is likely to tap properties acrossthe nation. FRP IV is currently scouting for deals in Phoenix,Houston, Dallas, Austin, Chicago, Los Angeles and Orange County,CA.

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The play is one of longevity. Fifield tells GlobeSt.com, theapartment market is currently seeing operating incomes his afive-year low, a figure that "should increase nicely over the nextthree to five years." He adds, "Nobody is stealing properties. Mostproperties are trading at 6% to 7% cap rates. The play is operatingthem well, upgrading and holding while the economy recovers andincomes can grow."

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For some of the older properties, Fifield is prepared torenovate. He says often assets that are between 10 and 15 years oldneed new kitchens and baths. Additionally they need the addition ofamenities like business centers, larger gyms and movietheaters.

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