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BRE Properties acquires Hollywood apartment community for $120.5M

BRE Properties announced the acquisition of Jefferson at Hollywood for a purchase price of $120.5M. The community of 270 apartment homes is located in the resurgent Hollywood sub-market of Los Angeles, California. The community was acquired on an unencumbered basis with proceeds from the company’s revolving credit facility. In connection with the acquisition, the company intends to dispose of several slower growth, non-core communities through a reverse like-kind exchange. The exchange is expected to be completed by the first quarter of 2014. The Jefferson at Hollywood was acquired at a discount to replacement cost and is expected to generate a first-year net operating income-to-purchase price yield of 4.0%.