BRE Properties Acquires 150-Unit Property in Lafayette, California

Tue, 16 Aug 2011 00:45:46 +0000

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

Kilroy Completes Secondary Offering

Wed, 13 Apr 2011 03:23:35 +0000

Kilroy Realty Corp. (KRC – Snapshot Report), a real estate investment trust (REIT), has recently closed its secondary offering of over 6 million shares at $38.25 each. The equity offer included approximately 0.8 million shares sold to the underwriters to cover the over-allotment options.

The company had initially announced an equity offering 4.5 million shares along with an option of an additional 675,000 shares to cover any over-allotments. However, Kilroy was later forced to increase the offer due to strong investor demand.

The company raised net proceeds of $221.2 million from the equity offering, which it intends to contribute to its operating partnership Kilroy Realty, L.P. The operating partnership in turn would utilize a portion of the net proceeds to finance the $100 million acquisition of four office buildings in Kirkland, Washington. The remainder of the proceeds would be used to repay debt under the operating partnership’s unsecured revolving credit facility and for potential future acquisitions.

Kilroy owns, develops and manages a diverse portfolio of office, industrial and multi-purpose real estate properties primarily in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area. At December 31, 2010, the company owned 10.4 million rentable square feet of commercial office space and 3.6 million rentable square feet of industrial space.

Kilroy maintains an active multi-year development program focusing on the economically dynamic locations characterized by strong long-term demand, limited supply, and high barriers to entry. As such, most of the properties of the company are concentrated in the coastal submarkets of Southern California that offer both a vibrant economic backdrop for businesses and a unique quality of life for their employees.

Currently, we have a ‘Neutral’ recommendation and a Zacks #3 Rank on Kilroy that translates into a short-term ‘Hold’ rating. However, we have an ‘Underperform’ recommendation and a Zacks #5 Rank (short-term ‘Strong Sell’) for MPG Office Trust, Inc. (MPG – Snapshot Report), a competitor of Kilroy.

homesmillbrae.com » Revolving Credit Facility

BRE Properties Acquires 150-Unit Property in Lafayette, California

Kilroy Completes Secondary Offering

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