By Jon Peterson
There are two Bay Area apartment complexes that were previously owned by San Francisco-based BRE Properties that have been placed into a joint venture between Palo Alto-based Essex Property Trust and the State of Wisconsin Investment Board.
The two properties are the 192-unit City Centre complex in Hayward located at 22800 Meridian Drive and the 282-unit Verandas property in Union City located at 33 Union Square.
“We have not stated anything publicly about what the purchase price was on these two properties,” says Barb Pak, director of investor relations for Essex.
These assets have been placed into the WESCO IV joint venture. There were three other former BRE properties in the Los Angeles area that have been set into the venture. These are the 188-unit Bridgeport Coast property in Santa Clarita and two properties in Valencia, the 234-unit Fairways at Westridge and the 220-unit Vistas of West Hills.
Wesco IV has a total of $160 million of equity in the venture. Both Essex and SWIB invested $80 million for a 50 percent stake in the relationship.
Three other ex-BRE properties were moved into another JV with Essex and SWIB. This is the Wesco III venture. Two of the properties are located in Los Angeles and one in Chino Hills. Wesco III was formed in 2012 and included a $60 million investment from the pension fund for a 50 percent ownership in the relationship.
There was one other joint venture has been established that involves properties previously owned by BRE. This is a venture with Boston-based AEW Capital Management. There are nine properties in the venture totaling 2,723 units. The assets are located in Southern California, Seattle and Bothell, Wash.
There are a total of 17 properties in these three JVs. They were contributed to the ventures with an estimated property value of $888 million.