SAN FRANCISCO--(BUSINESS WIRE)--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 acquisition of Lafayette Highlands, an 8.2-acre property in Lafayette, Calif. for $48.75 million. The community of 150 market-rate apartments is located in a San Francisco Bay area submarket with high barriers to entry, high median home values and one of the region’s top ranked school districts.
“The Lafayette acquisition furthers BRE’s strategy to allocate additional capital in the S.F. Bay area. Lafayette Highlands is in one of the most affluent and desirable communities in the area,” said BRE EVP, Chief Investment Officer Steve Dominiak. “The community has an attractive unit mix of more than 85% two- and three-bedroom apartment homes, appealing to residents attracted to the quality of life, schools and significant rent-to-own disparity in Lafayette.”
Lafayette Highlands was acquired at a discount to replacement cost and is the only community with more than 100 units in Lafayette. The property was acquired on an unencumbered basis with proceeds from the company’s revolving credit facility. Lafayette Highlands is expected to generate a first-year net operating income to purchase price yield of approximately 4.8% and is currently 95% occupied.
Built in 1973 and fully renovated in 2007, the Lafayette Highlands has a low-density design of 18 units per acre and an average unit size of 1,011 s.f. There are 14 residential buildings with two levels of wood-framed residential floors above parking. The gated community has a fitness center, outdoor pool and children’s playground. This transit-oriented development community is located minutes away from Highways 24 and 680 and is within two miles of both the Lafayette and Walnut Creek Bart stations, with a 30-minute commute to the San Francisco Financial District. The residents are within walking distance of downtown Lafayette and three miles of downtown Walnut Creek and its offices, retailers and dining establishments.
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 77 multifamily communities (totaling 21,820 units) and has joint venture interests in an additional 13 apartment communities (totaling 4,080 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.