Calera has contracted with Pacific West Management Co. to implement a repositioning program to drive revenues to current market levels. According to Jerry Binkley, president of Calera, the purchase was "one of the most challenging acquisitions we have ever made due to the volatility in the debt markets." He adds that the company continues to be "aggressive acquirers in our pursuit of California value-add product." The Brookstone property represents Calera's fourth acquisition in the past five months.

Marcus & Millichap Capital Corp. arranged a $23.4 million fixed-rate loan for the acquisition. The financing was arranged by Jake Roberts and Anita Paryani, senior directors in the West Los Angeles office of MMCC.

Roberts says that the financing provides more than $12,000 per unit in capital reserves for repairs and upgrades. "We convinced the lender that the borrower would be able to achieve post-rehab rents based on the surrounding market and improvements planned for the property," he says.