The fund will invest in multifamily properties located in California, Oregon and Washington. The plan is to add value through rental growth and appreciation, using Essex's development, redevelopment and asset management capabilities.
The fund will generally be Essex's exclusive investment vehicle for new investments until the Fund's committed capital has been invested or committed for investments or, if earlier, December 31, 2003.
Following the funds closing, Essex will transfer ownership of several properties that were acquired over the last 11 months in anticipation of the fund's formation. The purchases include six apartment properties with 1,377 units and two development land parcels whre approximately 368 units are planned.
Essex is a significant investor in the und, on the same economic terms as other limited partners. In addition, Essex, as a general partnner, will be compensated for its asset management, property management, development and redevelopment services and may receive incentive distributions if the Fund exceeds certain financial return benchmarks.
The West Coast apartment REIT also is reporting second quarter funds from operations of $23.1 million, or $1.10 per diluted share, a 17% increase from the same 200o period and the company's 25th consecutive quarter of double-digit FFO growth. At close of markets Wednesday, the company's share price stood at $50.50, off 15 cents on the day and $2.25 below a 52-week December high.
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