San Mateo-based Essex Property Trust, Inc. said Monday that it acquired its joint venture partner’s 49.9% interest in the BEXAEW portfolio for a total purchase price of $505 million on a gross basis. The portfolio is comprised of four properties totaling 1,480 apartment units and located in California and Washington State.

The seller’s cap rate is approximately 5.25%, according to Essex. However, after incorporating additional economic benefits by fully integrating this portfolio into Essex’s operating platform, the REIT estimates a 5.9% year-one yield.

Concurrent with closing on the acquisition, the company repaid $219.9 million of debt encumbering the properties and consolidated the communities on the company’s financials. The portfolio generated an 11.4% IRR and the company will recognize approximately $1.5 million in promote income, which will be excluded from core funds from operations.

Pictured: Esplanade apartments in San Jose, part of the BEXAEW portfolio.

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