SAN FRANCISCO, CA - BRE Properties, Inc. (NYSE:BRE) today announced the acquisition of The Vistas of West Hills, a 220-unit property in Valencia, Calif., for a total purchase price of approximately $56.5 million. The initial year-one stabilized capitalization rate on the investment is approximately 5.1%.
The Vistas, which was built in 2009, comprises 10 three-story, wood-framed buildings with tuck-under parking on 9.0 acres. The property is only three miles from two other BRE communities, Pinnacle at Westridge and Bridgeport Coast, providing the company with operational and staffing efficiencies. The local employment base includes companies in the entertainment (Six Flags Magic Mountain); travel (Princess Cruises); health care (Henry Mayo Newhall Memorial Hospital, Quest Diagnostics); film and production (Disney/ABC, Valencia Studios); biotechnology (MannKind); aerospace/defense (Woodward, Textron); and education (California Institute of the Arts, The Master's College) industries.
"The Vistas of West Hills, built on the last entitled apartment parcel in the Valencia master plan, is an important acquisition for BRE because it meets our strategy of concentrating capital to optimize operating efficiencies," said Stephen C. Dominiak, BRE's executive vice president, chief investment officer. "The combination of supply constraints, potential savings in operating costs, a diverse economy, and easy access to local employment, shopping, entertainment and major freeways make this property a valuable addition to our southern California portfolio."
BRE Properties, based in San Francisco, Calif., owns and manages apartment communities convenient to its residents' work, shopping, entertainment and transit in supply-constrained Western U.S. markets. BRE directly owns and operates 75 apartment communities totaling 21,318 units in California, Arizona and Washington. The company invests in communities through acquisition and development, and currently has six properties in various stages of development and construction, totaling 1,742 units, and joint-venture interests in 13 additional apartment communities, totaling 4,080 units. BRE Properties is a real estate investment trust (REIT) listed in the S&P MidCap 400 Index.
Source: BRE Properties