By Jon Peterson
San Mateo-based Essex Property Trust is now a 100 percent owner of the 1,098-unit Palm Valley apartment complex in San Jose, Calif. as stated by the public real estate investment trust in its 2016 fourth quarter earnings report.
The investor bought out its joint venture partner’s 50 percent interest in the property for $183 million. It was not stated in the earnings report who the joint venture partner was, however public documents list a series of companies that lead to Seattle-based Goodman Real Estate and its President and CEO, George Petrie. John Eudy, co-chief investment officer/executive vice president of development for Essex, declined to comment for this story.
The apartment complex is now unencumbered. When the property was owned jointly, there was a $220 million mortgage encumbering the property. When Essex bought out the joint venture partner, the entire loan was repaid by Essex. Palm Valley has been constructed in four separate communities over 37 acres of land.
Essex had been a 50 percent owner in the complex since November of 2014. This is when the company paid $180 million for its share of the property.