8-KOther Events

ESSEX PROPERTY TRUST, INC. 8-K Report, Corporate Update (Oct 5, 2004)

Filed October 5, 2004For Securities:ESS

Summary

Essex Property Trust, Inc. (ESS) has announced the sale of seven multifamily communities, totaling 1,777 apartment units, through its affiliate, Essex Apartment Value Fund ("Fund I"). This transaction, effective September 30, 2004, represents a significant disposition of assets by Fund I, in which Essex Property Trust holds a 1% general partner interest and a 20.4% limited partner interest. The details of the sale are outlined in a press release dated September 30, 2004, and the associated Agreement of Purchase and Sale, filed as exhibits to this Form 8-K. Investors should note that this is a disposition by an affiliated fund, not a direct sale by the REIT itself, though it impacts the overall portfolio strategy and value of the affiliated entities.

Key Highlights

  • 1Essex Apartment Value Fund (Fund I) sold seven multifamily communities.
  • 2Total of 1,777 apartment units were divested.
  • 3The transaction was announced on September 30, 2004.
  • 4Essex Property Trust holds a 1% general partner and 20.4% limited partner interest in Fund I.
  • 5Key transaction documents, including the press release and Agreement of Purchase and Sale, are filed as exhibits.
  • 6The sale involves affiliated entities, not a direct sale by Essex Property Trust, Inc.

Frequently Asked Questions

This 8-K filing details the sale of multifamily units by an affiliate, Essex Apartment Value Fund (Fund I). While not a direct sale by ESS, it indicates portfolio management decisions and potential capital realization within affiliated entities where ESS has significant ownership. Investors should monitor how these dispositions align with ESS's overall strategy and impact the value of their investment in Fund I.

Fund I is an affiliate of Essex Property Trust. Essex Property Trust, Inc. serves as the 1% general partner and holds a 20.4% limited partner interest in Fund I. This means ESS has both management control and a substantial economic stake in the fund.

Seven multifamily communities, comprising a total of 1,777 apartment units, were sold by Fund I. The filing references an Agreement of Purchase and Sale dated August 13, 2004, between the sellers (including entities related to Essex Property Trust) and United Dominion Realty, L.P. as the buyer.

The sale is by Fund I, an affiliate. While ESS will recognize its pro-rata share of gains or losses from its limited partnership interest and potential management fees from its general partner interest, the full revenue and asset impact will be consolidated or accounted for according to accounting standards, rather than being a direct sale on ESS's balance sheet.