La Jolla, California – August 23, 2007 – Paragon announced today the sale of Santa Susana Plaza, a neighborhood shopping center in Simi Valley, California. 

 

Paragon acquired the struggling shopping center in June of 2002. Shortly after the center was acquired, Paragon implemented a strategic capital expenditure budget and an intensive lease up program. The repositioning of the center included new landscaping, parking lot re-surfacing and painting with a modern color scheme. After completing renovations, Paragon was able to lease almost all of the existing vacant space at very competitive rents, increasing overall NOI and corresponding value.

 

After the successful repositioning of the property and implementation of Paragon’s initial business plan, investors realized a 31% internal rate of return with the sale of the center.  The decision to sell was based on the historically low level of cap rates, as well as the attractive purchase price that was offered from a buyer with different investment guidelines than Paragon. 

 

Paragon owns a diverse portfolio of commercial real estate properties throughout the Western United States. Paragon adds value to each investment they undertake through strategically allocated capital expenditures, a hands-on approach to investment management and an intrinsic knowledge of each market in which they invest.

 

Additional information can be accessed through the Company’s Web site at www.paragoncompany.com. If you have additional questions, please contact the Company via e-mail at info@paragoncompany.com or call (858) 535-9000.