SOURCE: Essex Property Trust, Inc.

October 16, 2007 18:41 ET

Essex Property Financial Corporation Closes $14.0 Bridge Loan for Financing of 146-Unit Apartment Property in Vancouver, WA

PALO ALTO, CA--(Marketwire - October 16, 2007) - Essex Property Financial Corporation (EPFC), a division of Essex Property Trust, Inc. (NYSE: ESS) and a provider of debt and equity capital for real estate in the Western United States, announced today that it recently closed a $14.0 million Bridge Loan for the completion and lease-up of London Flats, a 146-unit apartment community located in Vancouver, Washington. The loan was provided to an affiliate of Construction Design Services, Inc., the Vancouver-based owner/builder of the project. Scott Johnson of Cohen Financial's San Francisco office arranged the financing on behalf of the borrowing entity.

The three-phase property will consist of 6 studio units, 36 one-bedroom units, 72 two-bedroom units and 32 three-bedroom units. The 58-unit first phase was delivered earlier this year and is fully leased. The second and third phases, consisting of 44 units each, are scheduled for completion before year-end and in Spring 2008, respectively. The loan re-financed a regional bank construction loan, incorporating additional proceeds for interior upgrades to the remaining phases, exterior and common area upgrades and interest reserves to take the project through lease-up and stabilization. London Flats is located near Interstate 205 and State Route 500 and is also situated close to retail shopping.

"We were originally approached with a request for a mezzanine facility and given the dynamics for the Vancouver market and the favorable loan basis we were very interested in the deal," stated Michael VanderLey, Senior Vice President of Structured Finance for the Company. Mr. VanderLey continued, "However, it quickly became apparent that employing two lenders, each with future funding obligations that overlapped, would be difficult to document and problematic to administer. As a result, we determined that the best execution would be for EPFC to take over the existing loan, structure the overall pricing and economics to reflect the additional leverage, and control the entire financing of the project."

The floating rate, LIBOR-based Bridge Loan, leveraged the project to approximately 85% of cost. The loan is full recourse, and has a term of 18 months with one, 6-month extension option. Closing occurred on September 27, 2007.

About Essex Property Financial Corporation

Essex Property Financial Corporation (EPFC) is a multi-faceted provider of debt and equity capital for real estate located in the Western United States. EPFC invests in middle market transactions generally from $10 million to $100 million, providing Bridge Loans, B-Notes, Mezzanine Loans, and Preferred and Joint Venture equity. Additional information about EPFC can be found at

About Essex Property Trust, Inc.

Essex Property Trust, Inc., located in Palo Alto, California and traded on the New York Stock Exchange (ESS), is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast communities. Essex currently has ownership interests in 138 multifamily properties (units), and has 28,364 units in various stages of development. Additional information about Essex can be found on the Company's web site at If you would like to receive future press releases via e-mail-please send a request to

Contact Information

  • Contact:
    Nicole Christian
    (650) 849-1649