This morning, management's commentary will cover our financial and operating results for the quarter, the operating environment and an update on our investment activity, our financial position and outlook for the balance of the years. John, Scott and I will provide the prepared remarks and Steve Dominiak will be available during the Q&A session.We are pleased with our results for the third quarter. The operating environment particularly in our coastal California markets or apartments continues to be strong and we continue to see momentum in our markets which Scott will address in a moment. We are beginning to see acceleration in job growth across all of our core markets and in fact on a year-over-year all of BRE’s core markets turned positive in the third quarter for the first time since the recession began. In fact in our eight core markets over a 150,000 jobs were added in the 12 months ending September 2011 and over a 100,000 of these jobs came in the third quarter setting us up for a solid fourth quarter and into 2012. Our operating results came in as we expected and are consistent with the mid-year update we provided last quarter. This morning my comments will focus on some specific names regarding our investment activity and operations. On the investment side the landscape remains competitive within our markets despite the broader market gyrations. We continue our approach of opportunistically sourcing deals that makes sense from a location and a cap rate perspective. We were active early cycle acquirers during the past 24 months closing on over 465 million of on balance communities and increasing our operating real estate portfolio by 15%. Our Lafayette Highlands community acquired in the third quarter is our most recent example. The property is within two miles of both the Lafayette and Walnut Creek BART station has one of the best school districts in the nation as an average income of $127,000 and a median home price of $787,000 making our rent half of the monthly cost of owning a home.
We continue to look for well located existing assets that will complement our existing portfolio, but as we've discussed before at this time in the cycle we have shifted our focus to development. To that end we commenced construction on Wilshire La Brea in October and expect to start the Sunnyvale Town Center site this month.Wilshire La Brea with 478 units and close to 40,000 square feet of retail has a total estimated cost of $276 million. Sunnyvale Town Center totaled 279 units and 22,000 square feet of retail and has an estimated cost of $124 million. With these two starts our current developments under construction will total in excess of $550 million. Given the pricing power we've had this year at our 5600 Wilshire property just four blocks west of Wilshire La Brea and the continued strength of this section of the Wilshire corridor known as the Miracle Mile. We wanted to take advantage of the market strength in addition to locking in favorable construction pricing and start Wilshire La Brea, so that it would begin leasing at the end of 2013 and early 2014, a timeframe we believe will show continued pricing power given the lack of new supplies. As one of our legacy assets the current return is 4% and will stabilize in the low 5s but we are confident that this will be an excellent long-term asset for BRE. Our Sunnyvale Town and Country side which will be renamed Solstice is an example of the newer addition to our pipeline. This is an asset we put under control last summer with a current return of 6% and a stabilized return of 7.75. It will add significant value for our shareholders for years to come. Our Lawrence station project started one year ago and is on schedule to deliver the first units in the second quarter of next year and is on budget with a current return of 5.86% up from the [5.25] at the start and a stabilized return of 6.85. Read the rest of this transcript for free on seekingalpha.com