Bay Apartment Communities Agrees to Acquire Five Southern California Apartment Home Communities; $132.6 Million Transaction Marks Company's First Portfolio Acquisition.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)--Jan. 7, 1998--Bay Apartment Communities, Inc., (NYSE NYSE See: New York Stock Exchange :BYA)(PCX (1) A bitmapped graphics file format that handles monochrome, 2-bit, 4-bit, 8-bit and 24-bit color and uses RLE to achieve compression ratios of approximately 1.1:1 to 1.5:1. Images with large blocks of solid colors compress best under the RLE method. See PC Paintbrush. :BYA) has made its first portfolio acquisition, agreeing to acquire five apartment home communities in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, from The Travelers Insurance Company for a total purchase price of approximately $132.6 million. In addition, Bay will invest approximately $35.1 million in major repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. programs at the communities. The transaction will add 1,763 apartment homes to Bay's portfolio and increase its presence in Southern California to 16 apartment home communities. Acquisitions on three of the communities closed on December 30, 1997, with the remaining two transactions expected to close this month. "Bay was uniquely positioned to accomplish this transaction because of the major reconstruction programs that will be required at these communities and our proven skills in those areas," noted Gilbert M. Meyer, chairman and chief executive officer. "As a result," he continued, "we were able to acquire well-located communities which represent significant potential upside for our shareholders." The three acquisitions which have been completed include Mission Bay Club Apartments, a 564-apartment home community in the Mission Bay area of San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. ; the Westwood Club Apartments, a 363-apartment home community in West Los Angeles
The two communities under purchase agreements are the Amberway Apartments, a 272-apartment home community in Anaheim, and the Arbor arbor Garden shelter providing privacy and partial protection from the weather, most commonly a lightweight, latticed framework (trellis) of wood or metal with interlaced branches of vines or climbing shrubs trained over it. Park Apartments, a 260-apartment home community in Upland. The aggregate purchase price of $102.7 million for the Mission Bay Club, Westwood Club and Pacifica Club communities will be subject to an increase in the amount of $2.3 million in the event the company does not consummate the acquisition of each of the Amberway and Arbor Park communities. "This portfolio of communities greatly enhances our Southern California presence, particularly by adding communities in premier locations such as Mission Bay, West Los Angeles and Huntington Beach," noted Max L. Gardner, executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . The following summarizes the communities Bay has or plans to acquire as a result of this transaction: -- Mission Bay Club Apartments is a 564-apartment home community which Bay acquired for $43.8 million. Completed in 1969, the community has 165 homes with two bedrooms and two bathrooms; nine homes with two bedrooms and one bathroom; 270 homes with one bedroom and one bathroom; and 120 studio apartment homes. Resident amenities include a leasing center and clubhouse with bar, dining area and a dance floor, two fitness centers, an Olympic-sized swimming pool, oversized o·ver·size n. 1. A size that is larger than usual. 2. An oversize article or object. adj. o·ver·size also o·ver·sized Larger in size than usual or necessary. spa, volleyball and basketball courts and four lighted tennis courts. Bay will invest approximately $13.3 million in a repositioning program at the community, including the replacement of roofs and balcony decks, new waterproofing, seismic reinforcement of the parking structure and the addition of carports. In addition, Bay plans to repaint Re`paint´ v. t. 1. To paint anew or again; as, to repaint a house; to repaint the ground of a picture. s> Verb 1. and enhance lighting in the common area hallways and renovate apartment home interiors, including new floor and wall coverings, appliances, electrical and plumbing systems and cabinet doors. Bay will also renovate the community's recreation and leasing center and significantly upgrade the landscaping. "This is an extremely well-located community in a highly desirable area. It is within walking distance of Mission Bay beaches and close to two interstate freeways which are major corridors in the San Diego area," Meyer noted. -- Westwood Club Apartments is a 363-apartment home community which Bay purchased for approximately $32.1 million. Completed in 1966, Westwood Club has 102 homes with two bedrooms and two bathrooms; 126 homes with one bedroom and one bathroom; and 135 studio apartment homes. Resident amenities include a 15,000 square foot clubhouse, a swimming pool, two spas, tennis and basketball courts and a fitness center. Bay plans to invest approximately $7.5 million in a repositioning program at the community. The company plans to replace the community's roofs, repair and brace balcony decks, enclose first floor patios and make major repairs to the plumbing system. In addition, Bay plans to repaint the community's exterior, repair the parking structures and elevators, make upgrades to apartment home interiors and common area corridors, as well as the leasing facility and landscaping. "This community is in a prime location, one block east of the San Diego (405) freeway and one mile south of the Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. (10) freeway. In addition, it is approximately two miles from Century City, UCLA UCLA University of California at Los Angeles UCLA University Center for Learning Assistance (Illinois State University) UCLA University of Carrollton, TX and Lower Addison, TX and the Sony and Twentieth Century Fox Studios," Meyer said. -- Pacifica Club Apartments is a 304-apartment home community which Bay purchased for $26.8 million. Built in 1971, the community has 104 homes with two bedrooms and two bathrooms; 56 homes with two bedrooms and one bathroom; and 144 homes with one bedroom and one bathroom . Resident amenities include a swimming pool and spa, clubhouse and fitness center, a volleyball court and barbecue and picnic areas. Bay plans to spend approximately $7.1 million in a repositioning program, including replacement of the roof and wood sidings, waterproofing and stucco stucco (stŭk`ō), in architecture, a term loosely applied to various kinds of plasterwork, both exterior and interior. It now commonly refers to a plaster or cement used for the external coating of buildings, most frequently employed in repairs, repair of balcony decks and stairs and exterior painting. In addition, Bay plans to add carports, renovate the leasing/recreation center and upgrade the landscaping. Bay will also upgrade apartment home interiors, including new floors, wall coverings, appliances, cabinet doors and electrical and plumbing systems, as well as add washers and dryers. "Pacifica Club is in an excellent location in a very strong apartment market. We believe our repositioning program will result in tremendous upside," Meyer said. -- Amberway Apartments is a 272-apartment home community which Bay acquired for approximately $17.5 million. Built in 1983, the community has 48 homes with two bedrooms and two bathrooms; 48 homes with two bedrooms and one bathroom; 114 homes with one bedroom and one bathroom; and 62 studio apartment homes. Resident amenities include a swimming pool and spa, clubhouse and recreation room, laundry facilities and 450 parking spaces, including 272 which are covered. Bay plans to invest approximately $5.8 million in a repositioning program at the community. The program will include new roofs and wood siding, replacement or repair of stucco, framing, damaged balcony decks, windows and flashing. In addition, Bay plans to build fences around first floor patio areas, renovate the leasing and recreation centers and make significant improvements to apartment home interiors. "This community is centrally located in Orange County, adjacent to the 57 freeway and within approximately 20 minutes of any part of the county. In addition, it is in close proximity to the Anaheim Stadium/Arrowhead Pond sports and entertainment complex," Meyer said. -- Arbor Park Apartments is a 260-apartment home community which Bay purchased for approximately $12.4 million. Completed in 1973, the community has 72 homes with two bedrooms and two bathrooms; 48 homes with two bedrooms and one bathroom; and 140 homes with one bedroom and one bathroom. Resident amenities include a clubhouse with fitness center, two spas, barbecue areas and parking for 403 cars, 259 of which are covered. Bay plans to spend approximately $1.4 million on a repositioning program at the community. The program will include new roofs and repairs to siding, balcony and deck areas and replacement of the air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. condenser condenser Device for reducing a gas or vapour to a liquid. Condensers are used in power plants to condense exhaust steam from turbines and in refrigeration plants to condense refrigerant vapours, such as ammonia and Freons. and plumbing systems. Bay also plans to renovate the leasing and recreation centers and upgrade the landscaping. Bay will also make major repairs to apartment home interiors, including painting and new floor and wall coverings. "Arbor Park is located in a high traffic area at the west end of the Inland Empire In·land Empire A region of the northwest United States between the Cascade Range and the Rocky Mountains, comprising eastern Washington, eastern Oregon, northern Idaho, and western Montana. Farming, lumbering, and mining are important to the area. and adjacent to Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County. This is a market that has experienced solid job growth with virtually no new multifamily construction," Meyer said. Bay Apartment Communities is a fully integrated, multifamily real estate investment trust focused on the acquisition, development, construction, reconstruction and management of high quality apartment home communities. With the completion of three of the five acquisitions, the company's portfolio consists of 54 communities, containing 15,297 apartment homes, including homes delivered at Toscana, a partially developed community in Sunnyvale, California Sunnyvale ([sʌniveil]) is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley. As of the 2000 census, the city population was 131,760. . The company's portfolio will include 37 apartment home communities 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 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 , 14 communities in Southern California, two communities in the Seattle area and one in the Portland market. The company also owns six land sites in the San Francisco Bay Area on which it is building, or plans to commence building in the future, six communities which will contain an aggregate of approximately 1,698 additional apartment homes, including the remaining apartment homes under construction at Toscana. -0- This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained in this release are statements that involve risks and uncertainties, including, but not limited to, market demand, the effect of economic conditions, the impact of competition and competitive pricing, changes in construction scope or costs, the result of financing efforts, actual purchases under agreement, the effect of the company's accounting policies and other risks detailed in the company's Securities and Exchange Commission filings. CONTACT: Bay Apartment Communities Gilbert M. Meyer or Jeffrey B. Van Horn, 408/983-1500 |
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