As a condition to the acquisition, an affiliate of Essexacquired a 110,000-sf office building located adjacent to thedevelopment site for a contract price of $14.6 million. Essex hasentered into a non-binding letter of intent with a local developerthat provides, in part, for the contribution of the office buildingto a newly formed joint venture, which will implement the leasingand occupancy of the property.
In connection with the transaction, Essex will loan the ventureup to a total of $19.5 million, which includes tenant improvementexpenditures, leasing commissions, and carry costs, in the form ofstraight and participating mortgage debt, guaranteed by the localdeveloper. Essex (NYSE:ESS) currently has ownership interests in 75multifamily properties (16,431 units) and has 944 units in variousstages of development.
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