Home Properties purchased the 851-unit Orleans Village apartment and town home community in Alexandria from Charles E. Smith Residential Realty for $67.4 million. This translates to approximately $79,200 per unit.

Smith built Orleans Village between 1967 and 1972. The Fairfax County 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-bedroom units, 447 two-bedroom units, 272 one-bedroom units, an Olympic-size swimming pool, on-site laundry facilities and ample parking.

Home Properties will spend about $7.3 million during the next three years refurbishing common areas, upgrading HVAC systems, improving laundry facilities, installing new windows, and remodeling kitchens and baths. Management expects the property to generate a 9% initial unleveraged return on acquisition and capital improvement costs, with a return exceeding 10% by the second year.