Essex Property Trust Acquires Joint Venture Partner’s Interest in Four Communities Comprising 1,480 Apartment Homes
Summary
SAN MATEO, Calif.--(BUSINESS WIRE)--Essex Property Trust, Inc. (NYSE:ESS) announced today that it acquired its joint venture partner’s 49.9% interest in the BEXAEW portfolio for a total purchase price of $505.0 million on a gross basis. The seller’s cap rate is approximately 5.25%; however, after incorporating additional economic benefits by fully integrating this portfolio into our operating platform, we estimate a 5.9% year-one yield. The portfolio generated an 11.4% IRR and the Company will recognize approximately $1.5 million in promote income, which will be excluded from Core FFO. Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Factors that might cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, those associated with market risks and uncertainties, as well as the risks referenced in our most recent annual report on Form 10-K and any subsequent current reports on Form 8-K filed (and not furnished) by us with the SEC, as well as those risk factors and special considerations set forth in our other filings with the SEC which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.