CHICAGO--(BUSINESS WIRE)--Nov. 3, 2005--Equity Residential
(NYSE:EQR) today announced that the company has closed on its
previously announced acquisition of three high-rise apartment towers,
known as Trump Place, located at 140, 160 and 180 Riverside Boulevard
on the Upper West Side of Manhattan. The purchase price, after closing
adjustments, was approximately $809 million.
Trump Place, located in one of the premier residential areas of
New York City, features magnificent views of the Hudson River and city
skyline as well as easy access to restaurants, cultural institutions
and other lifestyle amenities.
The properties were constructed between 1998 and 2003 and consist
of 1,325 apartment units totaling approximately 1.06 million square
feet, approximately 40,000 square feet of retail space and 424 parking
spaces. The purchase price equates to approximately $580,000 per
apartment unit and $723 per square foot of rentable apartment space.
The company anticipates that the initial capitalization rate on this
acquisition, based on 2006 projections, will be 4.5 percent.
"We are excited to have been able to execute on the opportunity to
add properties of this quality, at a substantial discount to
replacement cost, to our New York metro area portfolio, which now
consists of over 5,000 apartment units," said Bruce W. Duncan, Equity
Residential's CEO.
This transaction was part of a larger transaction in which The
Carlyle Group and Extell Development Company simultaneously purchased
a large tract of developable land directly to the south of Trump Place
from a consortium of Hong Kong investors and Donald J. Trump.
"The potential for these assets is tremendous," said David J.
Neithercut, Equity Residential's President. "We intend to operate all
three buildings as rental properties while keeping our eye on the
opportunities that arise."
The acquisition is being financed primarily through the proceeds
of asset sales as well as the company's $1.6 billion credit
facilities.
Forward Looking Statements
The forward-looking statements contained in this news release are
based on current expectations, estimates, projections and assumptions
made by management. While Equity Residential's management believes the
assumptions underlying its forward-looking statements are reasonable,
such information is subject to uncertainties and may involve certain
risks, many of which are difficult to predict and beyond management's
control. As such, these statements are not guarantees of future
performance, results or events. Equity Residential assumes no
obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.
Equity Residential, an S&P 500 company, is the largest publicly
traded apartment company in America. Nationwide, Equity Residential
owns or has investments in 922 properties in 32 states and the
District of Columbia, consisting of 195,575 units. For more
information on Equity Residential, please visit our website at
www.equityresidential.com.
CONTACT: Equity Residential
Marty McKenna, 312-928-1901
SOURCE: Equity Residential