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Norcal REIT Makes $50M Play

OCEANSIDE, CA-Essex Property Trust Inc., the Palto Alto REIT, acquires the 282-unit Mission Hills Apartments. Essex uses proceeds from an apartment it sells in San Ramon, to make the acquisition.

By Daniel D. Williams | Updated on June 22, 2005

OCEANSIDE, CA-Essex Property Trust Inc., the Palo Alto-based REIT, has made another major play in the greater San Diego market. In the deal, Essex paid $50.5 million for Mission Hills Apartments, a 282-unit multifamily community. In another recent deal, Essex sold the 188-unit Eastridge Apartments in San Ramon, which it acquired in 1996 for $19.2 million, for $47.5 million. The company then used the proceeds to acquire Mission Hills. In addition to those deals, Essex s has recently listed apartment communities in Southern California. The properties are located in San Diego, Lake Forest, Fullerton, Long Beach and Bonita.The property is located within Rancho Del Oro, a master planned residential community and, according to an Essex company spokesman, the area has strong fundamentals for rental property. “This market is anticipated to produce very little housing supply, while generating historically high job growth. These supply and demand fundamentals, combined with the high-quality-of life, underlie our expectation for above-average rent growth,” says Keith R. Guericke, president and chief executive officer of Essex.Mission Hills Apartments was built in 1984 and encompasses twenty-eight, two-story buildings. The community contains 112 two-bedroom, one-bath units that average 835 sf, 168 two-bedroom, two-bath units averaging 885 sf, and 2 townhouse-style two-bedroom units averaging 1,010 sf.In all, Essex owns 123 multifamily properties counting 25,798 units. The REIT also has 407 units in various stages of development.

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