REDMOND, WA-Rreef sold the 226-unit Evergreen Park Apartments here to BRE Properties for $31 million, or about $137,168 per unit. Located immediately adjacent to the Microsoft campus, the 20-building complex was about 97% leased at the time of sale, which closed Friday. San Diego-based BRE plans to make unspecified improvements to the property. Including the upgrades, the first-year proforma return on investment, which assumes a roll-up in rents and a reduction in concessions, is about 5.75%, according to David Young of Hendricks & Partners, which brokered the transaction. “You can walk a wood path and be at Microsoft in 40 seconds,” Young tells “I think it’s one of the top 20 assets on the West Coast.”In addition to being adjacent to Microsoft–which announced it would be adding 3,000 employees while the transaction was in escrow–the 24-acre development sits near Lake Sammamish and Marymoor Park. Units range from studios to three-bedrooms. Current monthly rates are $935 to $955 for a studio to $1,425 to $1,445 for a three-bedroom unit. The current rent concession is one-month free with 10- to 12-month lease. An executive at BRE did not return a phone call seeking further comment on the transaction and the company’s plans for the property. According to the company’s latest quarterly report, it owns 3,149 units in the greater Seattle area. In the second quarter, 13% of BRE’s NOI came from its Seattle-area properties. During the quarter, the revenue from its Seattle-area properties grew by 1% but was offset by a 5% increase in expenses. Seattle area occupancy was 96% at the end of June, compared to 95% at the end of March and 94% at the end of June 2003. Year-to-date turnover is 59%, compared to 63% the same time last year.

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