BEVERLY HILLS, CA-"Cautious optimism" about the economy and the real estate markets is the operating phrase from leading economists, brokers, developers and investors, who expect conditions to improve later this year.

NEWPORT BEACH, CA-Health Care Property Investors Inc. posted its highest ever funds from operations (FFO) in 2002, according to the company's year-end earnings statement released Tuesday.

ORANGE, CA-Attorneys Booth, Mitchell & Strange renew their office lease with Arden Realty Inc. for 10,501 sf of office space at 701 S. Parker St.

LOS ANGELES-Thomas Properties Group expects to acquire the landmark office project, an architectural gem in a great location, for about $270 million. The property last sold in the 1980s for more than $640 million.

NORCO, CA-Passco Development LLC, an affiliate of Passco Real Estate Enterprises, plans 95,000 sf of industrial development on a 6.5-acre site it bought for $1.4 million. The project will be called Town & Country Business Center.

LOS ANGELES, CA-A buyer from Hollywood acquires the Sierra Vista apartments, a mix of studios, one- and two-bedroom apartments, in a 1031 exchange from a seller who had owned the property for seven years.

ANAHEIM, CA-The companies sign $4.126 million in leases for the interior decorator showroom and warehouse, which specializes in the sale of tile and floor coverings.

WEST LOS ANGELES, CA-The company acquires an 83-