SOURCE: Essex Property Trust, Inc.

Essex Property Trust, Inc.

July 12, 2010 19:54 ET

Essex Property Trust Acquires Two Communities

PALO ALTO, CA--(Marketwire - July 12, 2010) -  Essex Property Trust, Inc. (NYSE: ESS) a fully integrated Real Estate Investment Trust (REIT) that invests in apartment communities located in highly desirable, supply-constrained markets, announced today that the Company has acquired 101 San Fernando, a 323-unit community in San Jose, California for approximately $64.1 million (comprised of $4.5 million for the land and $59.6 million for the improvements) and Eagle Rim Apartments, a 156-unit community located in Redmond, Washington for $18.6 million.

Keith R. Guericke, President and Chief Executive Officer, stated, "These recent acquisitions demonstrate our ability to source accretive deals located in markets we believe will provide attractive external growth moving forward. We are well on our way to meet or exceed our goal of $300 million in acquisitions in 2010."

101 San Fernando
101 San Fernando was built in 2001 and is composed of 16 five-story buildings with a variety of studios, one-bedroom, two-bedroom, and three-bedroom units. All units feature nine foot ceilings and washers and dryers. Community amenities include a fitness center, lounge, business center and courtyard spa. 101 San Fernando is conveniently located in downtown San Jose nearby local dining and shopping and provides residents easy access to job centers and freeways.

The property is financed by $35.2 million in tax exempt bonds. The Company has entered into a three year total return swap whereby Essex will pay interest based on a variable interest rate equal to the SIFMA Index (Securities Industry and Financial Markets Association), which is currently at 0.25%, plus 150bps.

Eagle Rim
The Company also acquired Eagle Rim Apartments on June 30, 2010. The community was built in 1986 and consists of 39 two-story buildings with one and two bedroom floorplans. All units feature a full size washer and dryer, wood burning fireplace and a deck or patio. Community amenities include a recreation center, fitness center, sauna, pool and spa. Eagle Rim Apartments is conveniently located in Redmond, Washington, near the headquarters of Microsoft.

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 markets. Essex currently has ownership interests in 135 apartment communities with an additional 5 properties in various stages of development. Additional information about Essex can be found on the Company's web site at www.essexpropertytrust.com.

Forward looking statement -- The statements which are not historical facts contained in this release such as the statements regarding the economic supply and demand and the rental rate growth in the markets in which Eagle Rim Apartments and 101 San Fernando are located in as well as any statements regarding growth and return on investments, are forward-looking statements that involve risks and uncertainties, including but not limited to, unexpected changes in the economic conditions and market demand for rental units in the markets in which Eagle Rim Apartments and 101 San Fernando are located and growth of the Company. All forward-looking statements are made as of today, and the Company assumes no obligation to update this information. For more details relating to risk and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our most recent Report on Form 10-Q for the period ending March 31, 2010 and Form 10-K for the year ended December 31, 2009.

Contact Information

  • Nicole Culbertson
    (650) 849-1649