PALO ALTO, CA--(Marketwired - May 31, 2013) - Essex Property Trust, Inc. (NYSE : ESS), announced today the purchase of a land parcel and commencement of construction on an apartment community located in downtown San Jose, California. The twenty-three story property will contain 312 homes and approximately 6,000 square feet of ground floor retail space. The Company expects the community to cost approximately $145 million and will begin leasing in the spring of 2015.
The Company has entered into a co-investment partnership with an institutional investor for the development of the community. The Company will have a 55% interest in the venture and will earn customary management fees and may earn a promoted interest.
Each home will have luxury finishes and floor to ceiling windows. Amenities at the community will include a lap pool, rooftop sun deck with BBQ area, state-of-the-art fitness center, Wi-Fi lounge, and clubhouse. The site is located in the heart of downtown San Jose near high paying jobs, shopping, restaurants, entertainment, and public transportation. Several commercial developments are underway or planned, as the city is seeking to incentivize employers to locate downtown. In addition, there are plans for a BART station across the street from our community which will connect downtown to San Francisco. One South Market scores 97 out of 100 on walkscore.com.
About Essex Property Trust, Inc. Essex Property Trust, Inc., an S&P 400 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages apartment communities located in highly desirable, supply-constrained markets. Essex currently has ownership interests in 166 multifamily properties with an additional 9 properties in various stages of development. Additional information about Essex can be found on the Company's web site atwww.essexpropertytrust.com.
Thanks, Josh, it was alot of fun trying all the beers and appetizers. It was even better, knowing the project is really underway. This week, they should work in earnest at the site.
ReplyDeleteOh, sorry I couldn't make it!! But -- that's because I bought a condo downtown and was packing! I'm not going anywhere & I'm excited to see the continued growth and influx of people to downtown.
ReplyDeleteI hate to say it but I smell another 360 fiasco. I don't just smell it, I see it. Apartments that are too small and overpriced. Developers underestimated buyer's discernment, they really do.
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These are rentals, which is what 360 is now.
DeleteThe fiasco was when the 360 units were for sale and the market tanked. Now they are 95%+ leased and the market for rentals is very hot.
Delete"Developers underestimated buyer's discernment" You mean renter's discernment? I think most rental companies (Essex is a rental company they don't built it themselves) keep decreasing the rent until they get a low enough vacancy rate, as vacancies mean a lot of forgone potential income. So ultimately if they are "overpriced" you mean they are overpriced by your standards, but you must realize that someone is renting them, therefore it is not overpriced by the market. I'm not sure how that qualifies as a "fiasco" though.
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