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NEW YORK CITY-Upon closing of a larger deal, Chicago-based Equity Residential will add 1,325 apartments here to its portfolio in an $816-million transaction. The company has entered into a contract to acquire Trump Place at 140, 160 and 180 Riverside Blvd. The purchase price equates to approximately $585,000 per apartment unit and $730 per sf of rentable apartment space.

This transaction is part of a larger transaction in which the Carlyle Group and Extell Development Co. are purchasing the three properties as well as a large tract of developable land on the Upper West Side from a consortium of Hong Kong investors and Donald J. Trump for just under $1.8 billion. The tract of land, which is bounded by 59th and 65th streets and West End Avenue and Riverside Boulevard, can accommodate the future delivery of more than ten buildings, according to Carlyle officials. Both transactions are expected to close in the third or fourth quarter.

The properties, which were constructed between 1998 and 2003, consist of 1,325 apartment units totaling approximately 1.1 million sf, approximately 40,000 sf of retail and 424 parking spaces. Equity anticipates that the initial capitalization rate on this acquisition, based on 2006 projections, will be 4.5%.

"Selling assets in non-core, slower growth markets and using that capital as a primary source to fund acquisitions in high-barrier markets is at the center of our portfolio strategy," says Bruce W. Duncan, Equity Residential's CEO. "This acquisition is a prime example of that plan in action."

In August, Equity Residential acquired its first asset here with the $93.1-million acquisition of Hudson Crossing. The REIT subsequently purchased the Lower Manhattan landmark 71 Broadway for approximately $100 million.

Instant Insights /

GlobeSt.com UPDATE: Equity Residential Buys $816M of West Side Portfolio

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