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SAN MATEO, CA-The 575-unit Jefferson @ Bay Meadows luxury apartment complex here changed hands Thursday for upward of $220 million, according to local sources. Publicly held multifamily REIT Archstone-Smith of Denver acquired the property from its developer, Irving, TX-based JPI.

The seven-building complex was built in 2001 at 1101 Park Place, which is between the Bay Meadows Racetrack and Highway 101. A Whole Foods grocery store is located next to the property.

JPI had emptied the 261-units in the second phase of the development with the intention of converting it to condominiums, according to local sources. Since Archstone decided to buy it, JPI has been leasing it back up. It was about 50% leased when the sale closed yesterday, sources said. The first phase is upward of 95% occupied.

Property amenities include underground parking, a business center, movie theater, on-site dining and shopping, fitness facility, playground and a resort-style pool. Unit amenities 9-ft ceilings, full-size washer/dryer, gas fireplace and a balcony or patio.

Archstone declined comment on the transaction, which has not yet been formally announced, and JPI did not return a phone call seeking comment. The broker in the deal was Curtis Gardner of Arroyo & Coates. Gardner also was unavailable Thursday for comment.

Earlier this week, Archstone announced the acquisition of St. Francis Place, a 410-unit high-rise community at the corner of Third Street and Folsom Street in Downtown San Francisco. The $170-million purchase price was funded primarily through tax-deferred exchange proceeds and $53 million of operating partnership units.

In March, Archstone paid $65.1 million for Paragon Apartments, a 185-unit community 10 miles south of San Francisco in San Bruno. The property was still under construction at the time. The company subsequently said its total investment would be $72.1 million. The debt portion of the deal involved the assumption of $49.6 million of variable rate, tax-exempt bonds with an estimated all-in interest rate of 3.97%. The seller was the developer, a joint venture of Regis Homes, TMG Partners and MacFarlane Partners.

In December, the same JV sold Archstone-Smith the neighboring project, the 300-unit Meridian Luxury Apartments, for $101.2 million. San Francisco-based MacFarlane invested in Meridian and Paragon on behalf of its venture with the California Public Employees’ Retirement System.

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