Voracious Essex Continues To Buy

Essex Property Trust, BRE Properties, Cushman & Wakefield, San Francisco, Silicon Valley, multifamily, housing, Bay Area real estate, real estate news

By Sharon Simonson

Palo Alto landlord Essex Property Trust Inc. has acquired Park West apartments in San Francisco and the former Waterstone Santa Clara in Santa Clara for not quite $70 million.

The purchases bring the real estate investment trust an additional 282 Bay Area apartments and are the latest in an extended line of Bay Area multifamily developments and acquisitions for Essex in recent years.

The company disclosed details about the acquisitions as well as two more in Seattle and Kirkland, Wash., in a news release issued after 5 p.m. Oct. 8. The company said it had invested $119.8 million to acquire 464 apartments.

It paid $250,800 a unit for San Francisco’s Park West and $245,500 a unit for the Santa Clara property, which it has renamed Riley Square. The company expects to renovate the exterior of Park West, which was built in 1958, for $8 million.

The Park West per-unit price compares to an estimated $540,000 a unit for a 463-apartment project the company has begun developing in San Francisco. In June, Essex along with the Canada Pension Plan Investment Board bought two San Francisco parcels at 900 Folsom St. and 260 5th St. in the South of Market district. The company estimated total development costs of $250 million.

At mid-year, Essex had ownership interests in 160 apartment communities with more than 33,000 apartments in California and the Seattle metropolitan area. The company directly owns more than 8,200 Bay Area apartments and more than 13,600 apartments in Los Angeles, Orange, Riverside, San Diego, Santa Barbara and Ventura counties.

The company had nearly $1 billion in projects under development as of June 30, either solely for its own account or in conjunction with other enterprises, including three land parcels held for future development or sale. Collectively the developments would produce nearly 3,000 additional apartments.

Essex is scheduled to release its third-quarter financial results after the market close on Oct. 31 and has scheduled a conference call with management at 10 a.m. Pacific time the following day.

West Coast Commercial Real Estate News