Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-Equity Residential, based here, has received a $500-million secured loan to pay off debt during the year. The loan was originated by Wachovia Multifamily Capital Inc. for repurchase by Freddie Mac, says Mark Parrell, EVP and CFO of Equity Residential.

The term of the loan is 11.5 years. The all-in effective interest rate is nearly 5.5% with 10.5 years of the term at a fixed rate and the last year at a floating rate.

“We are pre-funding our 2008 maturities. During this calendar year we have $500 million worth of debt coming due,” Parrell says. “The reason we did this is given the uncertainty in the capital markets, we thought it prudent.” The collateral for the loan is 13 properties, with the ability to change properties or release them with certain conditions. Equity Residential has $1.4 billion of unsecured revolving credit and approximately $500 million of unrestricted cash. The company owns, or has an investment in, 569 properties with a total of 150,162 apartment units.

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?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


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.