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CHICAGO-Locally based Equity Residential has sold one of itstrophy divisions, Lexford Housing to affiliates of privately heldEmpire Group Holdings of Montvale, NJ for an all-cash price of$1.086 billion. The buyer has put up a non-refundable earnest moneycash deposit of $40 million. The deal is expected to close in thefourth quarter. The sale also includes Lexford's propertymanagement business, with a staff of about 800 employees, based inColumbus, OH.

Equity Residential president and CEO David J. Neithercut saysthe Lexford division "played an important part in the growth ofEquity Residential and performed very well for us, generating anunlevered internal rate of return of 15%." At closing, Neithercutsays the company will receive about $850 million of net saleproceeds, after closing expenses and repayment of about $210million of secured debt. He says the company expects to record atotal book gain of about $430 million.