X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

DENVER-Archstone-Smith Trust, a locally based apartment REIT, agreed to sell 12.05 shares of its common stock, which would generate $500 million in gross proceeds. Morgan Stanley & Co. is the sole book running manager for the offering.

The money, after payment of the discount and offering expenses, will be used to pay down Archstone-Smith’s credit facilities, including a short-term bridge loan the company put in place following the closing of its Oakwood acquisition. The total outstanding balance on these credit facilities is currently approximately $690 million. This transaction, together with the incremental debt capacity it gives the company, isexpected to provide the financial flexibility to fund approximately $1 billion needed to complete the company’s $2.5 billion development pipeline.

Earlier, Archstone-Smith agreed to acquire as many as 30 apartment properties from Los Angeles-based Oakwood Worldwide for about $1.4 billion. The properties represent more than 10,000 units in 29 cities across the nation. In Chicago, for example, the company picked up 304 units. Oakwood will lease back and retain management of 15 of the 30 properties.

Archstone-Smith has a current capitalization of about $15.1 billion. It owns and operates high-rise and condo apartment communities in neighborhoods with high barriers to entry. Most of their apartments are concentrated in the Washington, DC area. Southern California, San Francisco Bay, New York City, Boston, Southeast Florida, Chicago and Seattle, as well as some select neighborhoods in Denver. The company owns or has an ownership interest in 252 communities with a total of 86,531 units, including units under construction.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.