Essex acquires JV partner’s 49.9% interest in BEXAEW portfolio for $505M

Essex Property Trust announced that it acquired its joint venture partner’s 49.9% interest in the BEXAEW portfolio for a total purchase price of $505M on a gross basis. The seller’s cap rate is approximately 5.25%; however, after incorporating additional economic benefits by fully integrating this portfolio into our operating platform, we estimate a 5.9% year-one yield. Concurrent with closing, the Company repaid $219.9 million of debt encumbering the properties and consolidated the communities on the Company’s financials. The portfolio is comprised of four properties totaling 1,480 apartment homes. The portfolio generated an 11.4% IRR and the Company will recognize approximately $1.5M promote income, which will be excluded from Core FFO.