Equity Residential (EQR: Quote) Monday said it has agreed to sell 27 properties to a joint venture of Goldman, Sachs & Co. (GS) and Greystar Real Estate Partners LLC for $1.5 billion.
The transaction values the 27 properties at about $187,000 per apartment unit. Equity Residential has granted the buyer the right to exclude up to 8 percent of the assets from their purchase, but are obligated to purchase not less than $1.38 billion of assets.
David Neithercut, Equity Residential's chief executive officer, "With this transaction we will have made significant progress selling assets in our exit markets and non-core assets in primary markets to fund our share of the acquisition of Archstone."
The joint venture has agreed to buy a total of 8,010 units located at Washington, northern New Jersey, Florida, Phoenix, Denver, southern California and San Francisco bay areas.
Last November, Equity Residential had agreed to buy 60 percent of apartment owner Archstone Enterprise LP from Lehman Brothers Holdings Inc. in a cash and stock deal worth $6.5 billion. AvalonBay Communities, Inc. (AVB) is acquiring the rest 40 percent.
Equity Residential had said it would fund a substantial portion of the acquisition with proceeds from asset sales.
EQR is currently trading at $57.36, up $0.13 or 0.23%, on the NYSE.
by RTT Staff Writer
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