Terms of the acquisition were not disclosed. According to an SECfiling by publicly held BRE Properties on March 31, the apartmentcomplex went under contract in January at a price of $39million.

Montebello Apartments, built in 1997 and 1998, consists of 18three- and four-story buildings with some of the largest floorplans in the market, averaging 1,100 square feet. Amenities includepool with toddler area, a business center, fitness center, a spaand sauna set across a 19-acre site that includes seven acres ofwooded area. Montebello is situated on a hill overlooking the TotemLake areas in northeast Kirkland, with easy access to I-405,approximately 10 miles northeast of Downtown Seattle and six milesnorth of Downtown Bellevue.

Michael McNamara, managing director and head of acquisitions forTrecap, said that the fund's investment in the property provided aunique opportunity to benefit from a cyclical recovery in theSeattle market over the next few years. "Given the high quality ofthis property, coupled with lack of new supply and populationgrowth trends in the market, we see upside potential" he said.Berkadia Commercial Mortgage's San Francisco office originated thelong-term, fixed-rate acquisition financing through its Freddie Macprogram.