By Joel Scanlon
BRE Properties, a real estate investment trust (REIT), functioning in the main urban markets of metropolitan Seattle and coastal California declared that it has acquired Lafayette Highlands, for $48.75 million.
The 8.2-acre community has 150 market-rate apartments and is situated in a San Francisco Bay area submarket in Lafayette, Calif. The area protected with high entry barriers has the top rated school district of the region and high level home values.
BRE Properties has bought the Lafayette Highlands property at a discount to replacement cost and it is the only community in Lafayette with more than 100 housing units. BRE has bought the asset without any encumbrance by utilizing the proceeds of its revolving credit facility. The property, which presently enjoys 95% occupancy rate will produce an yield of around 4.8% as income to the invested purchase price.
The community constructed in 1973 was fully refurbished in 2007. The property has a low level of building concentration and comprises only 18 units per acre and the average size of every unit measures around 1.011 sq.ft. The property has 14 residential constructions each with wood-framed residential floors up to two levels above the parking. The gated property includes a play ground for children, an outdoor pool and a fitness center.
The community is situated close to highways 24 and 680 and situated within 2 mi distance from Walnut Creek and Lafayette. The location is a 30 minute drive to the financial district of San Francisco, within walking distance to the Lafayette business district and 3 mi to the business district of Walnut Creek and other dining places, retailers and offices.