The Cupertino property, called Sage at Cupertino, was developedin 1969. Property features a swimming pool, fitness center,clubhouse, business center, a newly remodeled leasing center andcovered parking. Pinnacle will manage the property. The seller, ajoint venture of Wolff Co. of Arizona and William Lyon of NewportBeach, had largely completed a renovation of the property. Pacificplans to inject "a modest amount" of additional capital to completethe renovation.

Pacific Property expects to enjoy "meaningful upside" in rentswithout having to invest significant dollars in further upgrades asthe Bay Area recovery continues to gather steam, according toPacific's acquisition manager Eric Schrumpf. "The property itselfis in excellent condition given the recent renovation," he says ina prepared sentence. "However, we believe that the full rentbenefit of the rehab has not yet been realized."

The acquisition is Pacific's fourth significant addition in theSan Francisco Bay Area since the spring of 2005. Most recently, inJanuary, Pacific closed on the 136-unit Townsquare in Millbrae for$25 million. In December 2005, it paid $25.25 million for the198-unit French Village and Normandy Square communities inBelmont.