SAN FRANCISCO–(EON: Enhanced Online News)–BRE Properties, Inc. (NYSE:BRE), a leading real estate investment trust
(REIT) with apartment communities located primarily in the major
metropolitan markets of coastal California and metropolitan Seattle,
announced today the acquisition of Lafayette Highlands, an 8.2-acre
property in Lafayette, Calif. for $48.75 million. The community of 150
market-rate apartments is located in a San Francisco Bay area submarket
with high barriers to entry, high median home values and one of the
region’s top ranked school districts.

“The Lafayette acquisition furthers BRE’s strategy to allocate
additional capital in the S.F. Bay area. Lafayette Highlands is in one
of the most affluent and desirable communities in the area”

“The Lafayette acquisition furthers BRE’s strategy to allocate
additional capital in the S.F. Bay area. Lafayette Highlands is in one
of the most affluent and desirable communities in the area,” said BRE
EVP, Chief Investment Officer Steve Dominiak. “The community has an
attractive unit mix of more than 85% two- and three-bedroom apartment
homes, appealing to residents attracted to the quality of life, schools
and significant rent-to-own disparity in Lafayette.”

Lafayette Highlands was acquired at a discount to replacement cost and
is the only community with more than 100 units in Lafayette. The
property was acquired on an unencumbered basis with proceeds from the
company’s revolving credit facility. Lafayette Highlands is expected to
generate a first-year net operating income to purchase price yield of
approximately 4.8% and is currently 95% occupied.

Built in 1973 and fully renovated in 2007, the Lafayette Highlands has a
low-density design of 18 units per acre and an average unit size of
1,011 s.f. There are 14 residential buildings with two levels of
wood-framed residential floors above parking. The gated community has a
fitness center, outdoor pool and children’s playground. This
transit-oriented development community is located minutes away from
Highways 24 and 680 and is within two miles of both the Lafayette and
Walnut Creek Bart stations, with a 30-minute commute to the San
Francisco Financial District. The residents are within walking distance
of downtown Lafayette and three miles of downtown Walnut Creek and its
offices, retailers and dining establishments.

About BRE Properties

BRE Properties, based in San Francisco, California, focuses on the
development, acquisition and management of apartment communities located
primarily in the major metropolitan markets of Southern and Northern
California and Seattle. BRE directly owns 77 multifamily communities
(totaling 21,820 units) and has joint venture interests in an additional
13 apartment communities (totaling 4,080 units). BRE Properties is a
real estate investment trust (REIT) listed in the SP MidCap 400 Index.
For more information on BRE Properties, please visit our website at www.breproperties.com.

Article source: http://eon.businesswire.com/news/eon/20110815006445/en/BRE/acquisition/Lafayette