Archstone-Smith Acquires $99M Complex

YORBA LINDA, CA-The Denver-based Archstone-Smith apartment REIT has acquired the 400-unit RiverBend apartment complex from Lyon Capital Management for $98.8 million, further expanding Archstone's Southern California portfolio after recent buys in Northern California. Local industry sources tell GlobeSt.com that the publicly held REIT plans a renovation play at the complex, which is at 25550 River Bend Dr.

The RiverBend complex, which consists of 50 buildings, was built in 1986 and typically maintains a high occupancy rate, which was about 95% at the time of the recent sale, sources tell GlobeSt.com. The property expands an Archstone-Smith Orange County portfolio that includes complexes throughout the county, adding to Southern California holdings that include Archstone properties throughout the region.

The Denver-based REIT, in its latest quarterly financial filings, named Southern California as one of its top regions, stating that strong operating income growth for the latest quarter "was driven principally by strong NOI growth in the Washington, DC metropolitan area, Southern California and the New York City." Those three metropolitan areas represent more than 72% of the REIT's portfolio.

Archstone has not yet formally announced the RiverBend acquisition, which was brokered by Curtis Gardner of Arroyo & Coates. Gardner was unavailable for comment Friday.

The RiverBend property is a 50-building complex that consists of one- and two-bedroom units that range from 800 sf to 1,128 sf. Rents range from about $1,300 to $1,700, according to the web site for the complex.

The RiverBend deal follows recent Archstone-Smith acquisitions in Northern California, where it has acquired more than 1,200 units this year. Among these was its recent purchase of the 360-unit Bay Landing complex in the East Bay area of San Francisco for $75.6 million.