Bay Apartment Communities completes acquisition of Rivershore Apartments.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)--May 3, 1995--Bay Apartment Communities (NYSE NYSE See: New York Stock Exchange :BYA) has completed its acquisition of Rivershore Apartments, a 245-apartment home community in Bay Point, Calif., 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 . Bay announced a definitive agreement for the acquisition in October, 1994 and assumed management of the apartment home community at that time. Due to federal income tax laws regarding tax-exempt bonds and the recent restructuring of Rivershore's tax-exempt bonds, Bay was not able to complete the transaction until after a six month option period. Bay purchased the community for $13,165,000, including the assumption of approximately $10,700,000 in tax-exempt debt. The Rivershore bonds currently bear interest at an all-in floating interest rate of 6.5 percent and carry a long-term credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing from the Federal National Mortgage Association (FNMA FNMA abbr. Federal National Mortgage Association Noun 1. FNMA - a federally chartered corporation that purchases mortgages Fannie Mae, Federal National Mortgage Association ) which Bay will also assume with the purchase. The FNMA credit enhancement provides for a AAA-rated credit enhancement on the bonds until their maturity on December 1, 2022. Bay intends to refinance the bonds and fix the interest rate on them at less than seven percent this summer. The company expects the refinanced bonds to carry a AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. return for 30 years with a fully amortized payment schedule over that period. Rivershore's current occupancy level is 95.1 percent, up from 93 percent when Bay assumed management of the property. The community had a trailing twelve month return of 8.3 percent. The community contains 44 one-bedroom, one-bath apartments, 145 two-bedroom, two-bath apartments, and 56 three-bedroom, two-bath apartments. It was built in 1985. Bay plans to extensively renovate the community. The approximately $500,000 refurbishing will include exterior painting, new landscaping, construction of a new leasing pavilion and enhanced security features. Bay Apartment Communities is a fully integrated multifamily real estate investment trust focused on the acquisition, development and management of high quality apartments 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 . The company owns and manages 23 apartment communities containing more than 5,400 apartment homes in the San Francisco Bay Area, metropolitan Sacramento and Fresno, Calif. CONTACT: Bay Apartment Communities Gilbert M. Meyer, 408/983-1500 |
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