BRE Properties, Inc. (BRE), a real estate investment trust (REIT), recently announced the sale of two Inland Empire apartment communities named Galleria at Towngate, a 268 apartment home community located in Moreno Valley, and Windrush Village, a 366 apartment home community located in Colton, California for $65.2 million.
The proceeds from the asset sale will be utilized to repay amounts outstanding under the company’s revolving credit facility.
The asset sale is a strategic move on the company’s part to streamline its portfolio by reducing its presence in the eastern portion of the Inland Empire and utilizing the proceeds to reinvest in coastal markets with strong long-term growth.
This apart, BRE commenced construction on its 2.4 acre site located in downtown Sunnyvale, California. The project will comprise 280 market rate apartment units and approximately 22,460 square feet of retail space for a total projected investment of $124 million. The first unit deliveries are expected in the second half of 2013 with completion expected in early 2014.
BRE Properties develops, acquires, and manages multi-family apartment communities primarily in the Western U.S., where it currently operates in three states: California, Washington and Arizona.
BRE Properties generally has assets located in supply-constrained premium markets of the country that have fared comparatively better than its competitors. Consequently, the company has a strong upside potential.
BRE Properties currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Equity Residential (EQR) holds a Zacks #3 Rank.
BRE PROPERTIES (BRE): Free Stock Analysis Report
EQUITY RESIDENT (EQR): Free Stock Analysis Report
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