November 27, 2006

Virtú Investments Acquires The Reserve at Autumn Creek

Friendswood, TX - Virtú Investments, LLC, a San Francisco based real estate investment management firm, purchased The Reserve at Autumn Creek in October of 2006. The 212 unit property is located in Friendswood, TX, an exclusive “bedroom community” where it is common to find custom homes priced in the millions of dollars. Virtú was able to purchase the property at a price which, after a modest cosmetic renovation, will be roughly 80% of current replacement cost.

The Reserve at Autumn Creek investment represents an excellent opportunity for Virtú to purchase a recently constructed, well located asset, at an attractive price. With two scenic lakes, a resort style pool, average unit sizes of 1032 square feet, custom home quality construction, direct access entries and attached garages, The Reserve is labeled by many of Houston’s apartment locators as the “Most Luxurious Apartment Community in Friendswood.”

Virtú will execute a modest renovation to The Reserve that will enhance the curb appeal and profile of the property. The major renovations will be exterior upgrades, including a new paint job, an office remodel and expansion, landscape improvements, as well as common amenity upgrades such as a computer center. Virtú believes that such renovations will significantly enhance The Reserve’s attractiveness to renters, leading to increased rents.

Virtú obtained long term, 10-year conduit financing from CharterMac, at a fixed rate of below 6%. The loan is interest only for the first 5 years and will amortize on a 30-year schedule thereafter. Virtú likes the fixed loan due to the historically low rate, which it believes should help preserve a strong exit CAP rate.

Texas based Regional Acquisitions Director Marc Olivieri (480-773-1619) sourced the investment for Virtu. For more information concerning other multi-family acquisitions in the Midwest, contact Mr. Olivieri. For information concerning acquisition possibilities in the Western U.S., contact Stuart Bone (415-999-2088). For information concerning commercial acquisitions on the West Coast, contact Will Fleming at Virtú Commercial (415-398-4202).

Michael Green and Scott McWhorter formed Virtú Investments in 1997. Since then, the company has acquired over forty properties throughout the country. The company's current portfolio is valued at approximately $400 million and Virtú has approximately $120 million of private equity under management. Virtú performs its own property management and has primary offices in San Francisco and Carlsbad, CA, and satellite offices in Seattle, WA and Scottsdale, AZ.

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