BRE Properties, Inc. (NYSE:BRE), a leading owner, operator and developer of high-quality apartment communities in targeted growth markets in California and Seattle, announced today the sale of six joint venture interests to its joint venture partner for a total sales price of $47.5 million.
“This sale furthers our strategy of disposing non-core communities and reinvesting the proceeds in BRE’s current development pipeline to increase our concentration in targeted high-barrier, coastal markets,” commented Constance B. Moore, President and Chief Executive Officer. After giving effect to this transaction, the Company exits the Denver, CO market and has two remaining communities held in joint venture structures, representing less than 0.5% of the Company’s expected 2013 annual net operating income.
|Details of the sale are as follows:|
|Interests in communities sold:||The Bluffs at Highland Ranch (Denver, CO)|
|The Fairways at Raccoon Creek (Denver, CO)|
|Pinnacle at DTC (Denver, CO)|
|Pinnacle at Mountain Gate (Denver, CO)|
|Pinnacle at Union Hills (Phoenix, AZ)|
|Pinnacle Terrace (Phoenix, AZ)|
|Ownership Interests:||BRE maintained a 15% interest in each of the joint venture communities. The entire 15% interest in each community was sold.|
BRE’s share of the six communities held in joint ventures for the year ended 2012:
|Income from unconsolidated entities:||$1,564,000|
|Management fee revenue received:||$1,082,000|
|Depreciation from unconsolidated entities:||
|Total contribution to FFO:||$3,772,000|
The sale of these communities resulted in a net gain of approximately $15 million. All of the communities were held on an unencumbered basis.