REAL ESTATE INDUSTRY NEWS
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High-rise condo project in Santa Ana sells for $128 million
Palo Alto's Essex Property Trust enters joint venture for the development.
By Tamirra StewartPublished: March 11, 2010 01:19 PM
Courtesy of Essex Property TrustEssex Property Trust has entered into a joint venture to purchase a 349-unit high-rise condominium project in the South Coast Metro area for $128 million.
The property, Essex Skyline at MacArthur Place, consists of two adjacent 25-story towers with floor-to-ceiling windows, Viking appliances and a wine storage room.
This follows the Palo Alto-based real estate investment trust's $27 million purchase of the DuPont Lofts in Irvine in January. The 115-unit condominium project was 85 percent complete at the time of the deal. The firm plans to continue construction of the development, which will cost about $6 million.
The new Santa Ana property was acquired from the construction lender at 55 percent of its initial development cost, according to Keith Guericke, president and CEO of Essex Property Trust. The deal gave the firm the ability to "own a well-located, upscale community that has tremendous appreciation potential when the rental market recovers.”
The firm also expects rents in the O.C. region to recover faster than other areas, according to Guericke, due to its limited supply of competing housing, among other factors.
Essex Property Trust acquires, develops, redevelops and manages multifamily residential properties in select West Coast markets.
Related headlines
Anaheim Hills-based Bomel inks construction contract
Coreland Cos. closes $3 million in leases
7 homes at 3000 The Plaza sell last month
Real estate forecast: Time is of the essence for sellers
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Courtesy of Essex Property Trust The property, Essex Skyline at MacArthur Place, consists of two adjacent 25-story towers with floor-to-ceiling windows, Viking appliances and a wine storage room. This follows the Palo Alto-based real estate investment trust's $27 million purchase of the DuPont Lofts in Irvine in January. The 115-unit condominium project was 85 percent complete at the time of the deal. The firm plans to continue construction of the development, which will cost about $6 million. The new Santa Ana property was acquired from the construction lender at 55 percent of its initial development cost, according to Keith Guericke, president and CEO of Essex Property Trust. The deal gave the firm the ability to "own a well-located, upscale community that has tremendous appreciation potential when the rental market recovers.” The firm also expects rents in the O.C. region to recover faster than other areas, according to Guericke, due to its limited supply of competing housing, among other factors. Essex Property Trust acquires, develops, redevelops and manages multifamily residential properties in select West Coast markets. Related headlines Anaheim Hills-based Bomel inks construction contract Coreland Cos. closes $3 million in leases 7 homes at 3000 The Plaza sell last month Real estate forecast: Time is of the essence for sellers |
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