BRE Properties, Inc. (NYSE:BRE), a leading real estate investment trust (REIT) with apartment communities located primarily in the major metropolitan markets of coastal California and metropolitan Seattle, announced today the sale of two Inland Empire apartment communities. BRE sold Galleria at Towngate, a 268 apartment home community located in Moreno Valley, and Windrush Village, a 366 apartment home community located in Colton, California. “The disposition activity is aligned with BRE’s portfolio strategy of reducing BRE’s presence in the eastern portion of the Inland Empire and utilizing the proceeds to reinvest in our coastal markets with strong long-term growth,” said Stephen Dominiak, BRE’s executive vice president and chief investment officer. Galleria at Towngate, constructed in 2006, and Windrush Village, originally constructed in 1985 and acquired by BRE in 1996, were sold for a combined gross sales price of $65.2 million. The combined gross sales price represents a 6.3 percent weighted average capitalization rate based on trailing 3-month annualized NOI. The sale of the two properties will result in a total gain of approximately $14.5 million. Proceeds from the dispositions will be used to repay amounts outstanding under the company’s revolving credit facility. Also on November 14, 2011, BRE commenced construction on its 2.4 acre site located in downtown Sunnyvale, California. The mixed use project will comprise 280 market rate apartment units and approximately 22,460 s.f. of retail for a total projected investment of $124 million. First unit deliveries are expected to occur in the second half of 2013 with completion expected in early 2014. The urban infill, transit-oriented development is located one block from a Cal Train station and within a two block radius of 700,000 s.f. of office space and 250,000 s.f. of retail space. The project is centrally located to many of Silicon Valley’s largest employers including Apple, Yahoo, Intel, Google, and Cisco Systems.
About BRE PropertiesBRE Properties, based in San Francisco, California, focuses on the development, acquisition and management of apartment communities located primarily in the major metropolitan markets of Southern and Northern California and Seattle. BRE directly owns 76 multifamily communities (totaling 21,336 units) and has joint venture interests in an additional 12 apartment communities (totaling 3,856 units). BRE Properties is a real estate investment trust (REIT) listed in the S&P MidCap 400 Index. For more information on BRE Properties, please visit our website at www.breproperties.com.