Bay Apartment Communities Acquires San Francisco Apartment Community Near Union Square.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Oct. 24, 1995--Bay Apartment Communities (NYSE NYSE See: New York Stock Exchange :BYA) has acquired City Heights Apartments, a 185-apartment home community in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . The community, which is comprised of two nine-story towers, is located approximately four blocks from the city's Union Square retail shopping area and roughly a mile from San Francisco's financial district. Bay paid $15.7 million for the community, or approximately $84,900 per apartment home. Bay expects the community, which has had a 12-month trailing return on cost of approximately 7.6 percent, will earn a substantially improved return on cost within a year of the acquisition. The City Heights community was built in 1990 at a cost of at least $21.5 million. With the transaction, Bay is acquiring approximately $20.8 million in tax-exempt bond Tax-exempt bond A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax. tax-exempt bond See municipal bond. financing on the property which it plans to reissue re·is·sue v. re·is·sued, re·is·su·ing, re·is·sues v.tr. To issue again, especially to make available again. v.intr. To come forth again. n. 1. at some future date. Current resident amenities include a fitness center, interior deck area, underground parking for 105 cars and retail outlets. Bay plans to spend approximately $1.1 million to refurbish re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur the community, including a new leasing office, fitness center, lobby and common areas, and to repair a significant drainage problem. "Our ability to purchase this high quality apartment community in one of the country's premier locations at significantly below replacement cost is a major benefit to our shareholders," said Gilbert M. Meyer, chairman and chief executive officer of Bay. "San Francisco continues to experience residential occupancy rates which are among the highest in the country, with little if any new development of multi-family assets," he continued. "Our planned reconstruction program, combined with Bay's strong on-site property management and leasing skills, will enable us to enhance the value of this community," he added. City Heights is currently 97 percent occupied. The apartment- home community has 47 studio; 113 one-bedroom/one bath; and 25 two- bedroom/two bath apartment homes. Bay Apartment Communities is a fully integrated, multi-family real estate investment trust focused on the acquisition, development, reconstruction and management of high-quality apartment communities in Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern . With the completion of this acquisition, Bay owns 23 apartment communities containing 5,934 apartment homes in the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay and Northern California. CONTACT: Bay Apartment Communities, San Jose Gilbert M. Meyer, 408/983-1500 |
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