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 following disposition activity:
- In June 2013, the Company completed the sale of Summerwind Townhomes, a 200-home, wholly-owned apartment community in Los Angeles, CA, for total net proceeds of $46.8 million.
- Also in June, the Company completed the sale of Arcadia Cove, a 432-home apartment community in Phoenix, AZ, in which the Company owned a 15% interest. Total net proceeds to BRE were $6.0 million.
|Community||BREOwnership||Homes||YearBuilt||May 2013Revenue perOccupiedHome||YTD 2013Annualized NOI (1)||YTD 2013 vs. 2012Revenue Growth (3)|
|Arcadia Cove (JV)||15%||432||1996||$825||$2,620,000(2)||4.6%|
The gross sales price on Summerwind Townhomes represents a 5.9% seller’s capitalization rate based on the community’s trailing 3-month net operating income (the implied capitalization rate including the impact of the Proposition 13 step-up in property taxes upon sale is an estimated 5.5%).Proceeds from the dispositions initially will be used to repay amounts outstanding under the Company’s $750 million unsecured revolving credit facility and subsequently deployed to fund the Company’s development activities over the next several months as well as other working capital needs. About BRE Properties BRE 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 74 multifamily communities (totaling 21,126 homes) and has joint venture interests in one additional apartment community (totaling 252 homes). 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.