UDR Completes $500 Million Asset Exchange

UDR Completes $500 Million Asset Exchange
DENVER, CO - UDR, Inc, a leading multifamily real estate investment trust, announced that it has completed a $500 million asset exchange with AvalonBay Communities, Inc. UDR acquired three communities and one land parcel for $263 million. UDR sold six communities to AvalonBay Communities for $237 million.

"The completion of this transaction further advances our strategic plan of reducing the average age of the portfolio while increasing the average monthly income per apartment home," said Tom Toomey, president and chief executive officer of UDR. "This exchange increases our exposure in Boston and San Francisco, markets where we were previously underweight, while simultaneously reducing our overweight exposure in Southern California."

After the close of this transaction, UDR will own, or have an ownership interest, in eight communities consisting of 2,481 homes in the Boston metro area, 12 communities consisting of 2,676 homes in the San Francisco metro area and 30 communities consisting of 8,095 homes in Southern California.

388 Beale consists of two-20 story high rise towers and is located in the urban Rincon Hill neighborhood of downtown San Francisco. Community amenities include a 24-hour concierge service, outdoor spa, state-of-the art fitness center, social lounge, and a controlled access on-site parking garage. The community's one-, two-, and three-bedroom homes feature floor-to-ceiling windows with panoramic views of San Francisco, fully equipped gourmet kitchens, and full-size washers and dryers. Residents are within walking distance of the Financial District, Embarcadero, and the Bay Bridge.

14 North is located north of Boston in Peabody, MA. The community amenities include a clubhouse, state-of-the art fitness center, landscaped picnic areas with covered atriums and barbeque grills, and a resort style swimming pool and sundeck. One-, two-, and three-bedroom homes, and lofts, feature open floor plans with bay windows, lofted ceilings, and spacious walk-in closets. The community offers easy access to Interstate 95 and US-1, as well as the Salem Train Station, providing convenient access to the greater Boston area.

Inwood West is located north of Boston in Woburn, MA. The community offers a clubhouse with an indoor basketball court, state-of-the art fitness center, beautifully landscaped picnic areas with barbeque grills, and a children's play area. One- and two-bedroom homes, and lofts, include generous floor plans, fully equipped gourmet kitchens, and washer and dryer units in every home. Residents have an array of transportation options ranging from train and bus stations, Amtrak's high speed rail line, and convenient access to Interstate 93 with direct highway access to Downtown Boston. The acquisition also includes a 9-acre land parcel which is entitled to build 34 market rate apartment homes.

The acquisition was funded through the proceeds from the disposition of the above mentioned communities, the assumption of an existing $56 million mortgage with an all-in fixed rate of 5.86% that matures in May 2019 (Inwood West), and an additional cash payment of approximately $26 million. This transaction is in addition to the previously disclosed $500 million of acquisition guidance and does not change the 2011 earnings guidance provided by the Company on its fourth quarter earnings call.
Source: UDR

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