Moreover, during the second quarter we commenced construction on a 181-unit luxury apartment complex in the Del Mar Heights section of San Diego. The project, which we expect to complete by February 2002, will be leased in stages and will generate an additional revenue stream for Calprop. The company has an inventory of more than 450 lots in various stages of development and is aggressively seeking additional entitled land in its key markets, for which the financing is already in place. Our strengthened cash flows will enable us to pay off debt maturing this year. We are keeping a firm focus on operating expenses and placing a precedence on cost containment to further bolster profitability.
Senior management is enthusiastic about the opportunities ahead.
Founded in 1961, Marina Del Rey, Calif.-based Calprop Corporation builds quality homes in some of the most desirable communities in California and Colorado. They are subject to various risks, such as weather, soils and environmental risks, earthquakes, and other uncertainties inherent in the business of developing real property which may be beyond the Company's control. There can be no assurance that the Company will be successful in meeting its expectations.