BRE Properties Sells Large Industrial Property -- Uses Tax-Deferred Proceeds in Purchase of Apartment Community.SAN FRANCISCO--(BUSINESS WIRE)--Sept. 28, 1995--In line with key elements of its strategic plan, BRE (Business Rules Engine) Software that automates policies and procedures within an organization, whether legal, internal or operational. The use of a rules engine (BRE) requires placing the company rules in an external repository that can be easily reviewed rather than Properties, Inc. (NYSE NYSE See: New York Stock Exchange :BRE) said it sold a vacant 358,000 square foot warehouse property in Pomona, California Pomona is a city in Los Angeles County, California, at the western edge of the Pomona Valley branch of the Inland Empire region since nearly the entire city is physically located east of the San Jose/Puente Hills. and used the proceeds of the sale as part of a tax-deferred transaction in the purchase of a 240 unit apartment community near Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. . BRE intends to continue an orderly disposition of the remaining industrial properties in its portfolio and to redeploy re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. the proceeds into multifamily properties. Frank C. McDowell, president and chief executive officer, said, "This transaction, which reflects our strategic direction, will have a very positive impact on our operating results in the near term. The sale of the Pomona warehouse property removed a major non-earning asset from our books. It also facilitated the acquisition of our 25th apartment community along with an immediate contribution to rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time ." The Pomona property has been completely vacant for more than a year. On a square foot basis, it represents 38% of the company's diminishing industrial portfolio. BRE sold the Pomona property, which had no mortgage debt, for $9.0 million. BRE used the proceeds of the sale to acquire Phase I of Newport Landing Apartments in Glendale Arizona for $9.2 million. Occupancy at the newly acquired apartment community is 96%. BRE also plans to acquire Phase II of Newport Landing Apartments, which consists of an additional 240 units now under development, when construction is completed in mid-1996. The purchase price for Phase II will be $12.8 million. The yield from the combined Newport Landing investment is projected to be 10.3%. In an unrelated matter, BRE said that it will receive $12.0 million in proceeds from a mortgage loan on the Verandas, a 97% occupied 282 unit apartment community in Union City, Calif. The Verandas was purchased for $16.2 million in cash in 1993. The favorable loan was negotiated with a fixed interest rate of 7.3% for a term of 10 years, with debt service payments based on a 30 year amortization. BRE Properties is a self-administered equity real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) which primarily owns and operates apartment communities in the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . BRE currently has ownership interests in 8,794 apartment units (5,475 wholly owned and 3,319 on land leased to others) in eight defined markets in California, Arizona, Washington and Oregon. CONTACT: BRE Properties, Inc. Lauren L. Barr, 415/445-6523 or Healy Partners & Co. Maury Healy, 415/546-6166 |
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