AvalonBay, EQR Complete Archstone Buy

NEW YORK CITY-AvalonBay Communities Inc. and Equity Residential have completed their previously announced acquisition of the assets and liabilities of Archstone Enterprise LP from Lehman Brothers Holdings Inc. The acquisition consists principally of a portfolio of high quality apartment communities in major US markets, as well as a handful of development parcels. EQR acquired approximately 60% of Archstone’s assets and liabilities for about $9 billion, while AvalonBay’s 40% share of the deal is valued at about $6.5 billion.

For its part of the Archstone acquisition, AvalonBay acquired 60 apartment communities, containing 20,089 apartment homes, including 1,198 units under construction; five parcels of land which would add another 1,414 units when developed; interests in joint ventures (which may be acquired on a deferred closing basis) which own 12 apartment communities; and a 40% ownership interest in a JV arrangement with EQR for non-core assets and residual liabilities that will be jointly managed until disposition or resolution.