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LOS ANGELES-Fountain Management has lined up $28.8 million in loans and preferred equity to acquire and reposition 264 apartment units in West Covina and San Pedro, according to George Smith Partners, which arranged the financing. Fountain plans to take the properties through extensive rehabilitations, according to Steven Orchard, a vice president at George Smith, who calls the two properties “excellent value creation opportunities.”

Orchard says that Fountain will rely on its hands-on management expertise to make an immediate impact on the properties. According to Greg Worchell, principal at Fountain Management, the acquisitions are part of a continuing expansion strategy at the firm, which owns and/or operates almost 1,000 units in Southern California.