Equity Residential (NYSE: EQR) today announced that the company and AvalonBay Communities, Inc. (NYSE: AVB) have completed their previously announced acquisition of the assets and liabilities of Archstone Enterprise LP (“Archstone”) from Lehman Brothers Holdings Inc. (“Lehman”), which consists principally of a portfolio of high-quality apartment properties in major markets in the United States. Under the terms of the agreement, Equity Residential has acquired approximately 60% of Archstone’s assets and liabilities and AvalonBay has acquired approximately 40% of Archstone’s assets and liabilities.
“This is an exciting day for Equity Residential and its shareholders as we add more than 21,000 high quality apartment units in our core markets to our platform and welcome more than 700 of the industry’s best people to our company,” said David J. Neithercut, Equity Residential’s President and CEO. “By funding a significant portion of this acquisition with proceeds from the sale of our non-core assets, we have nearly completed the total transformation of our portfolio. Going forward, our future earnings and shareholder return will be derived from the highest quality assets in the nation's high-barrier coastal markets.”
Archstone Assets being acquired by Equity Residential
Equity Residential has acquired 71 wholly-owned stabilized operating properties, consisting of 20,160 apartment units and two partially-owned and unconsolidated stabilized operating properties consisting of 768 apartment units with a budgeted average monthly rent of $2,681 per unit; three master-leased properties containing 853 apartment units; and four projects in various stages of construction for 964 apartment units.Summary of Operating Properties Being Acquired by Equity Residential:
|Washington, D.C. Metro||25||7,922|
|New York Metro||10||2,638|