Investors validly tendered $201.4 million in aggregate principal amount of the 7.45% Senior Notes due 2011 and $90 million in aggregate principal amount of the 7.125% Senior Notes due 2013. Remaining are $48.5 million of the 2011 notes and $40 million of the 2013 notes.

BRE is paying 100% of the principal amount for the 2011 notes and 98% of the principal amount for the 2013 notes. Payment, which will include accrued and unpaid interest, is expected to be made in a couple of days.

BRE Properties owns and manages 21,196 units in 72 apartment developments in California, Arizona and Washington State. The company has JV interests in 4,080 units and 2,077 units in various stages of development.

In December, the company purchased $10.4 million of its $460 million of 4.125% convertible senior unsecured notes, resulting in a $2.4-million net gain on extinguishment of debt.In February, the company put two of its four remaining Sacramento assets on the market. The REIT retained Apartment Realty Advisors to market and sell 752 units at two properties, Overlook at Blue Ravine in Folsom, CA, and Arbor Pointe in Sacramento, CA.

Neither the assets nor the seller are distressed. BRE revealed its plan to exit the Sacramento some 18 months ago. BRE sold three Sacramento-area properties in the first half of last year at or below a 6% cap rate on trailing NOI. One year later, cap rates are cresting 7%, market sources tell GlobeSt.com.

BRE Properties has been working to concentrate its portfolio in coastal, supply-constrained markets of California and Seattle. Despite that effort, BRE chief executive Constance Moore says rents will continue to decline this year and next.

"We believe we are looking at a negative rent curve for the next two years," Moore told analysts on its fourth quarter conference call. "All eyes are on the proposed government stimulus package. If it is successful helping to create jobs and grease the credit skids, it may soften the magnitude and duration of the pricing compression."