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BRE Buys More Units Adjacent Microsoft HQ

REDMOND, WA-Three months after paying $31 million for the 226-unit Evergreen Park Apartments located adjacent to Microsoft's world headquarters, the San Francisco-based apartment REIT buys the neighboring 197-unit property for about the same price.

By Brian K. Miller | Updated on December 06, 2004

REDMOND, WA-BRE Properties has followed its summer acquisition of the 226-unit Evergreen Apartments bordering Microsoft’s world headquarters by acquiring the neighboring 197-unit development known as Bellaire Place for about the same price.The San Francisco-based apartment REIT paid SSR Realty Advisors just under $31 million or $157,106 per unit for the Bellaire Place, according to public records. The property is located at 16539 Northeast 35th Court. Units rent for between $0.99- and $1.18 per sf. The first year capitalization rate on the well-leased property is believed to be about 5.5%. A BRE representative was not immediately available for comment Monday afternoon.At the end of July, BRE acquired the neighboring Evergeeen Park Apartments from Rreef for $31 million, or about $137,168 per unit. The 20-building development was 97% leased at the time of sale and features a short wooded path that leads directly to the Microsoft campus. Units rent for between $0.99- and $1.60 per sf. While the deal was in escrow, Microsoft announced it would be adding 3,000 employees. Including planned upgrades to the property, the first-year proforma return on investment, which assumed a roll-up in rents and a reduction in concessions, was estimated at about 5.75%.The broker for both transactions was David Young of Hendricks & Partners. Young declined to confirm the sale price, but did say it was a logical buy for the company. “It made a lot of sense for them to own the 197 units right next to them,” he says. “There is no discernable line between the two properties, and they look the same.”

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