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SANTA CLARA, CA-Essex Property Trust has all but completed the liquidation of its inaugural fund. The Palo Alto-based apartment REIT this week closed on the sale River Terrace, a newly developed 250-unit apartment community here that marks the last of 16 properties (4,646 units) in Essex Apartment Value Fund that the apartment REIT agreed to sell last fall to United Dominion Realty Trust for $756 million.Formed in 2001 and fully invested by 2003, Fund I owns one remaining asset that is currently being marketed for sale–Kelvin Avenue, a land parcel in Irvine that is permitted for the development of a 132-unit multifamily community. Essex is a 1% general partner and 20.4% limited partner in Fund I. Last summer, Essex announced the formation of its second apartment value fund and proceeded to raise $266 million of equity, including $75 million of its own money and similar sized investments from seven of the nine investors in the first fund. The company is now in the process of using the equity to acquire some $750 million of properties. In June, it acquired the 173-unit [email protected] Apartments in Downtown Seattle for $31.85 million. Completed in 1970, the 25-story concrete tower sits at the corner of 8th Avenue and Pine Street, one block west of the Paramount Theater and immediately north of the convention center. Also in June, it acquired Mission Hills Apartments, a 282-unit apartment community located in Oceanside for approximately $50.5 million. In March, Essex acquired the Regency Tower Apartment Homes in Oakland. The fund paid $21.2 million for the 18-story, 178-unit property, which is well leased and located a couple of blocks from Lake Merritt. The fund also originated a new mortgage loan on the property. The $11.5-million loan carries a fixed interest rate of about 5.1%, matures in February 2014 and has a one-year variable rate extension option.

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