145-unitBurbank property

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Located adjacent to the Metro Gold Line and built in 2002,Acappella has never been openly marketed, having been purchaseddirectly from Phoenix-based developer SNK just after its completionin 2002, Zander points out. He tells told Globe St.com, "In today'ssupply-constrained market, a core offering like Acappella willattract a significant amount of offer activity." Zander adds that,"With equity continuing to outpace available offerings, the marketcontinues to see significant cap rate compression".

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According to Norris, the property is expected to sell at a caprate of less than 5% as a core-plus deal. At an offering price of$36.9 million, the property "appeals to most of the institutionalmarket, as well as large private and sponsored capitalinvestors."<p.Zander says that Pasadena "is one of the strongestsubmarkets in Los Angeles County, and it's oneveryone's radar." With employment figures 20% higher thanthe Los Angeles County average, Pasadena offers investors a strongdemographic base and fundamentals for future rental growth, hesays.

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The Acappella features a mix of one- and two-bedroom floor plansaveraging 828 square feet. The property is within walking distanceof Old Town and the Metro Gold Line. Zander and Norris note thatthe offering includes in-place, 35-year fixed-rate debt at a 5.17%coupon rate.<p.

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