The 700-million Essex Apartment Value Fund, Essex's exclusive investment vehicle for new investments, acquired three properties totaling 288 units in San Dimas, CA for $36.7 million and a 400-unit property in Huntington Beach, CA for $58.2 million.
The San Dimas properties were built in 1981 and are within close proximity of one another. They include The Villas at San Dimas Canyon (156 units), The Villas at Bonita (102 units) and The Villas (30 units). The average units size is 927 sf. AMI Capital of Maryland provided two seven-year loans totaling 21.3 million for the purchases, both of which carry an interest rate of 4.6%.
Huntington Villas in Huntington is located one mile from Interstate-405 and two miles from the Pacific Ocean. The property was built in 1972 and fully renovated in 2002. It includes 360 two-bedroom units and 40 three-bedroom units. ARCS Commercial Mortgage of Calabassas, CA provided a $39.8-million loan for the acquisition. This seven-year loan also carries a fixed interest rate of 4.6%.
"Southern California continues to be among our strongest markets, and these acquisitions support Essex's investment strategy of purchasing modestly priced assets in above average neighborhoods that boast better than average job and population growth, and where new supply is limited," said Essex President and CEO Keith Guericke.
All properties in the fund are garden-style apartment communities with more than 100 units. Guericke says the fund has a remaining investment capacity of $300 million. The fund closes when it reaches capacity or at the end of the year, which ever comes first.
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