GlobeSt.com UPDATE: EQR Closes on $809M Upper West Side Buy

(To read more on the multifamily market, click here.)

NEW YORK CITY-Equity Residential Properties Trust has closed on its acquisition of Trump Place on Riverside Boulevard on the Upper West Side. The purchase price, after closing adjustments, was approximately $809 million, which equates to approximately $580,000 per apartment unit or $723 per sf of rentable apartment space.

This transaction was part of a larger deal in which the Carlyle Group and Extell Development Co. simultaneously purchased a tract of developable land directly to the south of Trump Place from a consortium of Hong Kong investors and Donald J. Trump for just under $1.8 billion. For previous coverage, click here.

The properties, which were constructed between 1998 and 2003, consist of 1,325 apartment units totaling approximately 1.1 million sf, 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%. The acquisition is being financed primarily through the proceeds of asset sales as well as the company’s $1.6-billion credit facilities.

David J. Neithercut, Equity Residential’s president, says the Chicago-based REIT intends to operate all three buildings as rental properties “while keeping our eye on the opportunities that arise.” This deal adds to Equity’s portfolio here, which now totals more than 5,000 units. In August 2004, Equity acquired its first asset here with the $93.1-million buy of Hudson Crossing. The REIT subsequently purchased the Lower Manhattan landmark 71 Broadway for approximately $100 million.