Carmel Partners Closes Discretionary Equity Fund with $215 Million
Firm Targets Acquisition, Renovation of Apartments

San Francisco, January 14, 2004 – Carmel Partners, Inc. announced today that it has closed a discretionary institutional real estate investment fund, Carmel Partners Investment Fund, L.P., with $215 million in equity commitments. The fund will invest in the acquisition and renovation of apartment and other residential properties. It is anticipated, that with leverage, the fund will acquire over $750 million of assets over the next three years.

The Fund’s strategy is to selectively buy underperforming multifamily properties and actively manage those properties, seeking market inefficiencies and making value-based improvements to each investment property and its operations. The fund will also consider development and strategic joint venture opportunities with select real estate operators. The firm’s in-house operations include research, acquisition, development, construction, financing, leasing and management capabilities. With a team of more than 225 employees, Carmel Partners is one of the largest private real estate investment firms focused on the multifamily sector.

Since the firm’s founding in 1992 by Ron Zeff, Carmel Partners has acquired or developed multifamily investments with approximately 9,700 units in 19 separate transactions with a value of approximately $1.2 billion. Headquartered in San Francisco, the firm also maintains offices in Irvine, Denver and Seattle. The company’s investment in The Villas Parkmerced Apartments, a 3,483-unit community located in San Francisco, was the largest single-asset multifamily transaction in the United States.

“Over the last decade, I believe we have proven that value-based investing in apartment properties and active management of those investments can produce strong risk-adjusted returns through multiple market cycles,” Mr. Zeff said. “We believe the current economic environment and pending demographic shifts will produce buying opportunities in certain markets. Furthermore, our current target markets in Northern and Southern California, Colorado and the Pacific Northwest are anticipating favorable supply and demand characteristics which should translate into higher long-term rent growth and improved occupancy rates. We believe our focus on select markets, and our strong local market presence will enable us to recognize the value enhancement opportunities we’re seeking.”

Mr. Zeff noted that after years of working with institutional investors on a deal by deal basis, Carmel Partners decided to raise a discretionary fund to quickly and efficiently capitalize on potential investment opportunities.

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Contact: Owen Blicksilver
Owen Blicksilver Public Relations
516-742-5950

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