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March
1, 2004
San Francisco, CA.
Lynch Investments Announces the Sale of Fontana
Portfolio
For Immediate Release:
In January of 2004, Lynch Investments sold its last Fontana property,
the 60-unit Juniper Terrace Apartments. This sale represented
the last of eleven multifamily properties that Lynch had acquired
in the Inland Empire of Southern California since 2001, on behalf
of four different investment groups. Over that time, Lynch's acquisitions
totaled over 300 apartment units, primarily in the city of Fontana.
These eleven properties were purchased for a little more than
$15 million and ultimately sold for over $21 million. The average
holding period for each property was slightly more than one year.
Lynch had marked the Inland Empire as an acquisition target prior
to 2001 on a rationale based on visibly high cap rates in an area
that had previously failed to attract significant investor attention.
Lynch reasoned that there would be continued upward pressure on
relatively low rents, especially when compared with properties
in population centers nearer to the Southern California coast.
Prior to 2001, this pricing pressure had not yet resulted in dramatically
higher selling prices. In addition, stiff barriers to entry in
Fontana precluded the introduction of new product. The timing
of Lynch's purchases thus allowed Lynch and its investors to participate
in property value gains of as much as 50% in a little more than
a one year holding period.
Lynch Investments continues to identify and acquire properties
that exhibit the potential for compelling returns. The recent
purchase of the Hampton Green Apartments in San Antonio, Texas,
represents Lynch Investments' third acquisition in San Antonio.
For more information, please contact David Becker at (415) 364-3606
or send an email message to dbecker@lynchinvestments.com.
David Becker
Director of Investor Relations
Lynch Investments, LLC
505 Sansome Street, Suite 1450
San Francisco, CA. 94111
Tel: (415) 364-3606
Fax: (415) 362-9343
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