December 29, 2005

Orion Residential LLC

Orion Residential LLC, a national multifamily investment company with an office in Bellevue, acquired two Phoenix properties: the 336-unit Posada Vallarta for $23.55 million and the 224-unit Aviana at the Biltmore for $42.5 million. The latter is a joint investment with Montecito Property Co. Orion Principal Scott Knauer led the acquisition of both properties. Posada Vallarta is near the Pointe Tapatio Resort and is one of the few apartments that adjoin the Mountain Preserve. Bernard Allison will manage Posada Vallarta, and Commercial Services Building Inc. will provide construction management. Aviana at the Biltmore is near the Camelback Corridor. The new owners plan to spend more than $1.5 million improving the property, which Montecito will market. Orion officials say they plan to aggressively build its apartment portfolio in Phoenix. The market's increase in single-family and condominium prices combined with a booming population and high job growth will generate strong returns. Orion President and CEO Brian Ward adds his company wants to pursue its strategy of buying high-end apartments in other key markets, including the Puget Sound region. This is in addition to the company's core strategy of buying value-add apartment properties. Orion, which also targets select condo conversion opportunities, owns and operates more than 4,000 apartment units around the nation.