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SAN BRUNO, CA-The Colorado-based apartment REIT Archstone-Smith Trust has acquired its second asset here, paying $65.1 million for the Paragon Luxury Apartments. The 185-unit multifamily complex represents the second phase of the Crossing at San Bruno, a master planned mixed-use development rising from a 20-acre former US Navy Property.

In December, Archstone-Smith paid $101.2 million for the 300-unit Meridian Luxury Apartments located next to the Paragon development. The developer and seller of both properties is a joint venture of Regis Homes, TMG Partners and MacFarlane Partners. San Francisco-based MacFarlane invested in Meridian and Paragon on behalf of its venture with the California Public Employees' Retirement System. Mary Ann King and Brett Betzler of Moran & Co. brokered both the Paragon and Meridian transactions.

As the new owner of Paragon, Archstone-Smith will oversee completion of the project, which broke ground last summer and is slated for completion in the spring of 2007. The complex will include one-, two- and three-bedroom apartments ranging from 650 sf to 1,300 sf. Twenty percent of the units will be designated for low-income residents. The remaining units will be rented at market lease rates.