CHICAGO--(BUSINESS WIRE)-- Equity Residential (NYSE: EQR) today announced that, as part of a three-property transaction in New York City, the company has acquired two high-rise apartment towers and has entered into a contract to acquire a third apartment tower for a combined purchase price of $475 million. These luxury properties are located in highly desirable residential areas of Manhattan and consist of 910 apartment units, 23,339 square feet of retail space and 50,000 square feet of parking space. The purchase price equates to approximately $470,000 per apartment unit and $545 per square foot of rentable apartment space. The initial capitalization rate on the combined transaction is 5.52%. The acquisition of these three properties is being funded primarily from disposition proceeds.

The acquired properties, which closed on January 29, 2010, are: River Tower, a 38-story apartment tower located at Sutton Place and 54^th Street in the Sutton Place neighborhood of Manhattan, constructed in 1982, consisting of 323 apartment units and a 36,000 square foot parking garage; and 777 Sixth Avenue, a 32-story tower located at Sixth and 27^th Street in Chelsea, constructed in 2002, consisting of 294 apartment units and 10,281 square feet of retail.

The company has also signed a definitive contract to purchase Longacre House, a 26-story apartment tower located at 305 W. 50^th Street at Eighth Avenue in Midtown, constructed in 2000, consisting of 293 apartment units, 13,058 square feet of retail space and a 14,000 square foot parking garage. While the transaction is subject to customary closing conditions, the company anticipates closing in the second quarter of 2010, but no later than May 1 when the existing first mortgage is open for prepayment at par.

"We are very pleased to add these premier properties, at prices well below replacement cost, to our New York portfolio," said David J. Neithercut, Equity Residential's President and CEO. "This transaction is yet another example of our ongoing strategy to add high-quality assets to our portfolio in core markets that position the company to benefit from improving apartment fundamentals."

After the close of this three-property transaction, Equity Residential will own and operate 26 properties, consisting of 7,320 apartment units, in the New York Metro Area, including 14 properties consisting of 3,825 apartment units in Manhattan. The acquisition of these properties will increase the company's New York Metro Area concentration of budgeted 2010 net operating income to approximately 11%.

Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 494 properties located in 23 states and the District of Columbia, consisting of 136,843 apartment units. For more information on Equity Residential, please visit our website at www.equityresidential.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements. These statements 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 inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. Other risks and uncertainties are described under the heading "Risk Factors" in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityresidential.com. Many of these uncertainties and risks are difficult to predict and beyond management's control. Forward-looking 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.

    Source: Equity Residential