Essex Property Trust Buys Fremont Apartment Complex for $112.5MM

By Meghan Hall

After seeing “significant” growth during the third quarter, Essex Property Trust is continuing to follow-through on its belief in West Coast markets, including the Bay Area. In a recent deal, an affiliate of the company acquired a Fremont apartment complex for $112.5 million, or about $551,470 per unit. According to sources familiar with the deal, the seller of the complex–known as The Rexford Apartments–were affiliates of the Ezralow Company.

The asset is located at 3400 Country Drive and was originally constructed in 1972. The community totals 204 units. Residences are a mix of one- to three-bedrooms and range in size from 720 square feet to 1,430 square feet. The community features a recreation room, Montessori School on-site, bike rooms, fitness center and swimming pools.

Newmark’s Senior Managing Director Nate Oleson, Executive Managing Director Mark Leary, Director Rob LeDoux, and Director Ian O’Connor, served as advisors on the transaction. According to Newmark, the deal is the largest single, multi-family transaction in Fremont’s history.

“The Rexford presented buyers with a rare opportunity to invest in a fully-renovated multifamily community in one of the most sought-after suburban locations in the Bay Area,” said Oleson. “As the cost of single-family housing continues to skyrocket in the East Bay, more and more renters are seeking highly-amenitized, luxury apartment communities like The Rexford.”

The property last traded hands in August of 2016 for $40.05 million, or $196,323 per unit, according to public records. The community is within an easy distance of Kaiser Permanente Fremont Medical Center, a shopping center anchored by Trader Joe’s and Target, and several local schools.

San Mateo-based Essex had a healthy third quarter, according to a recent investor presentation. During Q3, Essex reported a net operating income of $981,156,000. Northern California makes up about 41 percent of Essex’s total net operating income.

Essex noted in its presentation that West Coast markets recovered well. Year-to-date the company has purchased $225.8 million of multifamily housing, while the company’s dispositions total $330 million. Essex operates about 244 apartment communities with 60,000 residential units across Northern and Southern California, and the Pacific Northwest.

West Coast Commercial Real Estate News