The deal marks "one of the few sizable transactions completed in the San Fernando Valley in 2009," according to The Harris Group, which notes that the sale was completed in time for the new year. The transaction was an all-cash purchase, and Essex was one of multiple bidders on the property, which was sold by an institutional investor.
Built in 1989, the Regency at Encino was 95% occupied at the time of the sale. The two-building Regency complex houses 11 one-bedroom, one-bath units; seven one-bedroom, one-bath lofts, 53 two-bedroom, two-bath units and three three-bedroom, two-bath apartments.
The other recent Essex deal was the REIT's acquisition of a 115-unit condo project called the Dupont Lofts from Cathay Bank for $27 million. Essex plans to finish construction on the project and to operate the property as apartments.
The Dupont project is 85% complete and will require an additional six months of construction and estimated completion costs of $6 million, consisting primarily of unit interior finishes, according to Essex.
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