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SAN FRANCISCO-BRE Properties said this week that investors tendered approximately $180 million of the $300 million in notes it most recently offered to buy back. The apartment REIT had offered to buy any and all of its outstanding 5.75% Senior Notes due 2009 and its 4.875% Senior Notes due 2010.

The offering, its third since late last year, is part of the company’s effort to improve its balance sheet. Last week, when the company launched the latest tender offer it also closed on a $620 million secured credit facility that it intends to use for the repayment of outstanding debt obligations and general corporate purposes.

Earlier this month investors tendered 76% of the 2011 and 2013 senior notes the company offered to buy in late March. The offer was for $250 million of 7.45% Senior Notes due 2011 and $130 million of 7.125% Senior Notes due 2013.

The loan facility consists of two 10-year, $310-million loans originated by Deutsche Bank Berkshire Mortgage for repurchase by Fannie Mae. The first was drawn in full upon closing while the second loan is expected to be drawn on or about August 4, 2009.

There is an interest-only period for a portion of the term for both tranches, with annual payments of principal thereafter following a 30-year amortization schedule. The effective composite annual cost of debt is 5.6%, inclusive of rate-hedging transactions.

Collateral for the facility comprises 15 multifamily properties totaling 4,651 units. The facility provides for collateral substitutions and releases upon certain conditions.

BRE Properties has been working to concentrate its portfolio in coastal, supply-constrained markets of California and Seattle. It currently owns and manages 21,196 units in 72 properties in California, Arizona and Washington State. It owns joint venture interests in an additional 13 properties with a combined 4,080 units and has another 2,077 units in various stages of development.

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