DENVER, CO - UDR, Inc, a leading multifamily real estate investment trust (REIT), announced the acquisition and pending acquisitions of three communities. The acquisitions of the communities will be financed via cash, available capacity under the Company’s credit facility and the assumption of a $31 million first mortgage on 21 Chelsea with an interest rate of 6.76% and a June 2012 maturity date, which can be pre-paid at par in December 2011.
“The acquisition of these three communities continues our portfolio transformation and strategy of owning apartment homes in markets characterized by above average job growth, low home affordability and limited new supply – three of the key drivers to strong rental growth,” said Tom Toomey, President and CEO. “Pending completion, the off-market acquisitions of Rivergate and 21 Chelsea are an opportunity to substantially increase rents, both through the implementation of UDR’s operating platform and through the redevelopment of the communities. In Washington D.C., the acquisition of View 14 was an opportunity to own a recently developed asset with luxury condominium style finishes and amenities located directly across the street from our 2400 14th Street development.”
Rivergate is located in the desirable Murray Hill neighborhood of Manhattan. The 35-story, 706-home community built in 1985 occupies a full city block between 34th and 35th Streets, FDR Drive and 1st Avenue. Residents benefit from this convenient location as it provides easy access to FDR Drive, is four blocks from the subway stop at 33rd Street and Park Avenue, and is within walking distance to Grand Central station, the NYU Medical Center and the U.N. headquarters. Community amenities include a fitness center, 125-space parking garage, 24-hour doorman, laundry facilities, and an outdoor playground and garden. The community offers one-, two-, and three- bedroom homes – over 50% of which have a balcony and views of the East River. Plans to invest between $40 - $60 million over the next three years in the redevelopment of the homes include high-end kitchens and bathrooms with new cabinets, granite countertops, stainless steel appliances, new windows, and hardware. Community upgrades will include a newly constructed glass enclosed 6,000 square foot rooftop fitness center and deck, updated lobby and building entryway, and the addition of a business center and resident lounge. Following the completion of the redevelopment, and the implementation of UDR’s property management platform, it is anticipated that rents will be approximately 35% higher than the current monthly income per occupied home of $3,262.
21 Chelsea is located on 21st Street between 6th and 7th Avenues in the desirable Chelsea neighborhood of Manhattan. The 14-story, 210-home community is located within walking distance to a number of major retailers, including: Trader Joe’s, Whole Foods and the Chelsea Market. Residents are two blocks from the subway stop at 23rd street and 7th Avenue, and within walking distance to the High Line Park, Hudson River Park and Chelsea Piers. Community amenities include a 24-hour doorman, rooftop deck, laundry facilities and a valet service. Plans to invest between $6 - $8 million over the next two years in the redevelopment of the homes will include new kitchen and baths with new cabinets, granite countertops, and stainless steel appliances. Community upgrades will include a redesigned lobby and improving the current rooftop space by adding new landscaping and outdoor furniture and grills. Following the completion of the redevelopment, and the implementation of UDR’s property management platform, it is anticipated that rents will be approximately 20% higher than the current monthly income per occupied home of $3,226.
View 14 is located in the popular U Street Corridor – a young professional demographic neighborhood in Northwest Washington, D.C. The 9-story, 185-home community is located directly across the street from UDR’s 2400 14th Street development (255 homes) and only ten blocks from UDR’s Andover House community (171 homes). With close proximity to employment centers and only four blocks from the U Street metro, residents enjoy easy access to the U Street Corridor/14th Street Shopping District and Connecticut Avenue/Dupont Circle District. This luxury condominium project was completed in November 2009 and offers an on-site 24-hour concierge, resident lounge, 2,400-square-foot fitness center with a yoga room, two rooftop decks, movie theatre, business center, library, a game room and balconies in over 80% of the homes. View 14 has a 100% property tax abatement incentive through 2020.
UDR, Inc. (NYSE:UDR), an S&P 400 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of March 31, 2011, UDR owned or had an ownership position in 59,614 apartment homes including 1,170 homes under development. For over 38 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates.