Lehman, Banks Give Zell $150M as Archstone Deal Ends

CHICAGO-Equity Residential, based here, said late Wednesday that it has received the $150 million in termination fees from Bank of America, Barclays Bank PLC and Lehman Bros. Holdings Inc. to finalize the full sale of Archstone to Lehman. Equity had tried to buy at least a portion of the Denver-based multifamily ownership firm, but, being blocked by Lehman, at least got a sizable consolation prize.

Also late Wednesday, Lehman confirmed it has completed the purchase of the entire remaining stake in Archstone. Lehman has exercised its right of first refusal, acquiring the final 26.5% interest in Archstone for $1.5 billion. Lehman had also purchased another 26.5% interest from the banks in January for $1.3 billion.