BRE Properties Inc. (BRE) a real estate investment trust recently acquired land for development in San Francisco’s Mission Bay district. The total purchase price is $41.4 million. Construction is expected to start in mid-2012 and until then BRE will undergo some pre-development work at the site.
BRE acquired two parcels of land in the Mission Bay district, which will be used for residential purposes and will be developed in two phases. Phase I consists of development of 170 apartment units and 17,000 square feet of retail space. The development of Phase II consists of an additional 190 apartment units.
The master plan for development commenced by BRE will be beneficial for the future residents as it will consist of 280,000 square feet of retail space and 6,000 residential units. Additionally, it will also consist of 41 acres of open space along with 4.4 million square feet of commercial and medical space.
BRE is actively engaged in the development of the land parcels and new apartment communities. The properties of BRE are usually located near business, transportation, employment and other valued amenities of city life which are essential for customers who value the service and flexibility of rental living.
The limited supply of land and close proximity to local employers and availability of mass transit will create an ideal environment for BRE to strengthen its position in the San Francisco markets.
BRE is a real estate investment trust that develops, acquires and manages multi-family apartment communities primarily in the Western U.S. BRE currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Equity Residential (EQR) currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
BRE PROPERTIES (BRE): Free Stock Analysis Report
EQUITY RESIDENT (EQR): Free Stock Analysis Report
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