Essex Closes Apartment Fund

Essex Property Trust, Palo Alto, Calif., has reported the closing of its Essex Apartment Value Fund with an equity commitment of $265.9 million from eight institutional investors, including Essex.The fund will use debt financing of about 65% of the estimated value of the underlying real estate, allowing it to invest up to $750 million in multifamily properties in some targeted West Coast markets, according to the real estate investment trust. The fund will lean toward investment opportunities in Seattle and the San Francisco Bay Area. Keith R. Guericke, Essex's president and chief executive officer, said seven of the nine investors in Essex Fund I, including Essex, are participating in the second Essex apartment fund. The fund's objective is "to add value by identifying and acquiring assets in markets with high rental growth potential and then using the company's development, redevelopment, and asset management capabilities to add value," Essex said.