Essex Considering Sale of Apartment Portfolio

PALO ALTO, CA-Essex Property Trust Inc. is considering the sale of Essex Apartment Value Fund LP, a 17-property portfolio concentrated in Southern California that it values at approximately $640 million. The locally based REIT said this week it has retained Credit Suisse First Boston “to evaluate strategic alternatives” for the fund.Known as Fund I, Essex Apartment Value Fund has ownership interests in 15 operating apartment developments comprising 4,396 units. It also owns interests in two apartment communities totaling 480 units that are under development and one additional land parcel permitted for another 132 units. It was organized in 2001 to add value through rental growth and asset appreciation.According to SEC filings, Fund I has acquired and committed to develop multifamily properties with an aggregate cost at approximately $640 million, (including the estimated total cost of development and redevelopment projects), and is now considered fully invested. Essex CFO Michael Schall could not be reached for comment on the hiring of CSFB.Essex currently has ownership interests in 125 multifamily properties (26,991 units), and has 1,056 units in various stages of development. Additionally, the company owns interests in five recreational vehicle parks (comprising 1,717 spaces), five office buildings (with approximately 173,540 sf) and two manufactured housing communities (containing 607 sites). The Properties are located in Southern California (Los Angeles, Ventura, Orange and San Diego counties), Northern California (the San Francisco Bay Area), the Pacific Northwest (the Seattle, Washington and Portland, Oregon metropolitan areas) and other areas (Houston, Texas, Las Vegas, Nevada and Hemet, California).The hiring of CSFB was announced Tuesday night. Essex share price on Wednesday is trading at $65.98, up $0.53 on the day. The 52-week range for the share price is $56.33-$67.04.