145-unitBurbank property


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".


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.


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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