Home Properties purchased the 851-unit Orleans Village apartmentand town home community in Alexandria from Charles E. SmithResidential Realty for $67.4 million. This translates toapproximately $79,200 per unit.

Smith built Orleans Village between 1967 and 1972. The FairfaxCounty property is minutes from I-395 and I-495 commuter routes.With a 1999 average occupancy rate of 97.4% and 1,040-sf unit size,monthly rents average $954. The complex has 132 three-bedroomunits, 447 two-bedroom units, 272 one-bedroom units, anOlympic-size swimming pool, on-site laundry facilities and ampleparking.

Home Properties will spend about $7.3 million during the nextthree years refurbishing common areas, upgrading HVAC systems,improving laundry facilities, installing new windows, andremodeling kitchens and baths. Management expects the property togenerate a 9% initial unleveraged return on acquisition and capitalimprovement costs, with a return exceeding 10% by the secondyear.