PALO ALTO, Calif., May 7 /PRNewswire-FirstCall/ -- Essex Property
Financial Corporation (EPFC), a division of Essex Property Trust, Inc
(NYSE: ESS) and a provider of debt and equity capital for real estate in the
Western United States, announced today that it funded a $6.9-million mezzanine
loan for the acquisition of California Hill, a 153-unit, age-restricted
apartment community located in Concord, California. The loan was provided to
Chateau Senior Living Apartment Associates, LLC, a joint venture between
affiliates of Carlton Senior Living Communities and Piedmont Properties. As
part of the acquisition, the joint venture assumed approximately $8.9 million
of existing financing, consisting of tax-exempt and taxable bond financing,
credit-enhanced by Fannie Mae (FNMA), as well as secondary financing provided
by Fannie Mae. Centerline Capital Group (formerly CharterMac) will continue to
provide loan servicing and oversight for the senior debt pieces.
California Hill, originally developed in 1991, is an age-restricted
community for active seniors 55 years of age and older. The buyer intends to
re-brand the asset under the "Chateau" label of properties owned and operated
by affiliates of Piedmont and Carlton Senior Living. The mezzanine loan
structure provided capital to acquire the property as well as fund capital
improvements. The property is located within easy access to major freeways and
BART.
"California Hill is an excellent example of the type of transaction Essex
Property Financial Corporation seeks to finance," stated Michael VanderLey,
Senior Vice President of Structured Finance for the Company. Mr. VanderLey
continued, "The property's excellent location in a supply-constrained
submarket coupled with Carlton Senior Living's track record and the joint
venture's business plan were elements we found compelling. Our ability to
layer mezzanine financing on top of the low-leverage senior debt allowed the
Carlton/Piedmont joint venture to own 100 percent of the project economics at
a favorable all-in cost of capital." Mr. VanderLey added, "Finally, we were
excited by the opportunity to work with FNMA and Centerline on this project.
EPFC is among a handful of non-DUS lenders approved by FNMA to provide
mezzanine capital behind bonds that they credit-enhance. We look forward to
working with FNMA on future mezzanine transactions."
The floating rate, LIBOR-based Mezzanine Loan was structured with fixed
payment rates during the first three years of the term. The loan, which
leveraged the project to approximately 85 percent of cost, has a term of 48
months with one, 12-month extension option. Closing occurred on March 29,
2007.
About Essex Property Financial Corporation
Essex Property Financial Corporation (EPFC) is a multi-faceted provider of
debt and equity capital for real estate located in the Western United States.
EPFC invests in middle market transactions, generally from $10 million to $100
million, providing Bridge Loans, B-Notes, Mezzanine Loans, and Preferred and
Joint Venture equity. Additional information about EPFC can be found at
www.essexpropertytrust.com/epfc.html.
About Essex Property Trust, Inc.
Essex Property Trust, Inc., located in Palo Alto, California and traded on
the New York Stock Exchange (ESS), is a fully integrated real estate
investment trust (REIT) that acquires, develops, redevelops, and manages
multifamily residential properties in selected West Coast communities. Essex
currently has ownership interests in 133 multifamily properties (27,637
units), and has 908 units in various stages of development. Additional
information about Essex can be found on the Company's web site at
www.essexpropertytrust.com. If you would like to receive future press releases
via e-mail-please send a request to investors@essexpropertytrust.com.
About Carlton Senior Living Communities
Carlton Senior Living Communities (CSL) is a privately-held, vertically
integrated owner/operator/developer of Senior Housing communities. CSL owns
and manages over 1,000 Senior Housing units in the Bay Area and Northern
California, including properties in Pleasant Hill, San Leandro, Fremont, San
Jose and Sacramento. CSL actively seeks to acquire and/or develop Senior
Housing projects from 50 to 200 units in infill locations throughout Northern
California, Southern California and Northern Nevada.
About Piedmont Properties
Piedmont Properties is a private investor actively acquiring and/or
investing in properties located in major West Coast markets. Within the
multi-family sector, Piedmont is actively acquiring 150 to 500 unit properties
with some type of value-added component. The company currently owns interests
in over 2,000 units in major Western U.S. markets, including Las Vegas,
Denver, Salt Lake City, Reno and the San Francisco Bay Area.
About Centerline Capital Group
Centerline Capital Group, a subsidiary of Centerline Holding Company,
lends, invests and manages capital, with a strong focus on the real estate
industry. Centerline Capital Group is headquartered in New York, New York and
has over 500 employees in nine offices throughout the United States. For more
information, please visit Centerline's website at http://www.centerline.com or
contact Elizabeth Haukaas at 212 521 6453.
Contact: Nicole Culbertson, +1-650-849-1649.
SOURCE Essex Property Trust, Inc.
Contact: Nicole Culbertson, +1-650-849-1649