Essex invests $11.2 million in two Southern California properties; company continues expansion in recovering markets.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--June 26, 1997--Essex Property Trust Inc. (NYSE NYSE See: New York Stock Exchange :ESS) announced the acquisition of two 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, properties, an investment of $11.2 million in the region. Villa Scandia scan·di·a n. See scandium oxide. [From scandium.] Apartments is a 118-unit community located in Ventura. The property was acquired at a contract price of $5.2 million and is currently 96 percent occupied. Casa del Mar The Casa Del Mar (also known as the Thomas Case House) is a historic home in Sarasota, Florida. It is located at 25 South Washington Drive. On February 14, 1997, it was added to the U.S. National Register of Historic Places. , located in Pasadena, is a 96-unit apartment community Essex acquired at a contract price of $6.1 million. Twenty-seven percent of Essex's multifamily portfolio is now located in Southern California. Keith Guericke, Essex's president and chief executive officer, noted: "Our stated strategy of investing in selected Southern California submarkets has led to the acquisition of these properties. Ventura County and Pasadena are two areas which are expected to see continued job growth and low levels of new multifamily construction. The combination of these factors, along with the high cost of home ownership, lead to strong demand for multifamily properties in these areas." Guericke went on to say, "Our recent emphasis on the recovering Southern California and Seattle markets is in line with our multi-market approach to real estate. Essex's properties are well-situated to prosper as these markets continue to revive through job growth, infrastructure expansion and increased property values." Villa Scandia is a one-story community with studio and one-bedroom units. Residents enjoy a pool, tennis courts and clubhouse. The property was purchased from an affiliate of Westbrook Partners, the holder of Essex's 1996A convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . Michael Schall, Essex's chief financial officer, commented: "The relationship we established a year ago with Westbrook has proved mutually beneficial, not only in the issuance and sale of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , but with the additional opportunities we have identified over the past year. Our acquisition of Villa Scandia, along with our management of other properties owned by Westbrook, have created opportunities for Essex otherwise unavailable." Located in Pasadena, Casa del Mar offers studios, one- and two-bedroom units. The community has a pool, spa, gated underground parking and a lounge. Individual units enjoy a private patio or balcony, fireplace, dishwasher and microwave. The community is within easy reach of the 210 and 134 freeways, offering excellent access to downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or . The property is expected to benefit from the creation of jobs in the motion picture and television industry heavily concentrated near Pasadena. Essex Property Trust Inc., located in Palo Alto and traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (ESS), is a fully integrated Real Estate Investment Trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ). Self-administered and self-managed, Essex focuses on multifamily properties in targeted West Coast markets, specifically the San Francisco, Seattle, Southern California and Portland metropolitan areas. Currently, Essex has ownership interests in 39 multifamily properties (8,260 units), accounting for approximately 94 percent of its revenue. Additional information can be located on the world wide web at www.essexproperties.com . -0- The statements which are not historical facts contained in this release are forward looking 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, the result of financing efforts, the effect of the company's accounting policies and other risks detailed in the company's Securities and Exchange Commission filings. CONTACT: Essex Property Trust Inc. Keith Guericke or Wendy Carhart, 415/494-3700 |
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