The Fountain Park development opened in 2002 and was the first project completed in Playa Vista, the huge master-planned community on the Westside of Los Angeles. Playa Vista will eventually grow to 3.8 million sf of office space, 185,000 sf of retail space and 5,846 homes.

King says the Fountain Park property drew strong investor interest because Playa Vista offers "some of the best residential units in the entire metro area," along with its location near the ocean and close to major job centers. King's partner, Davis, notes that the property is partially financed with $83.2 million in tax-exempt, variable-rate bonds at interest rates that average about 2.1%, substantially lower than rates available on conventional variable-rate loans. Keith R. Guericke, president and CEO of Essex, says the REIT's decision to invest in Fountain Park was based on two primary considerations, one being the favorable tax-exempt financing and the other being the project's "irreplaceable location." Essex says the financing and other agreements require 53% of the apartment in Fountain Park to be subject to various rent restrictions based on resident income.

The Fountain Park complex is at the intersection of Lincoln and Jefferson boulevards. It consists of five, four-story, elevator-served buildings constructed above one- and two-level underground parking. The property also includes 4,754 sf of retail space. Apartments range from studios to three-bedroom units, in sizes from 527 to 1,176 sf. Amenities include two swimming pools, a fitness center, a business center, a conference room, and a clubroom equipped with a kitchen and a large-screen television.

The sale is one of a number of large apartment transactions in Los Angeles County that King and Davis have brokered in the past year or two, including the $117-million sale of the Marina Pointe apartments in Marina del Rey; the $100-million sale of the Malibu Meadows in Calabasas; and the $98-million sale of the Post Paseo Colorado apartments in Pasadena.