DENVER, CO - UDR, Inc., a leading multifamily real estate investment trust, announced that it has entered into a definitive agreement to acquire Dwell95, a 507-home apartment community in New York City’s Financial District, for $325.0 million. It is anticipated that the purchase price will be funded through the issuance of approximately $50 million of operating partnership units (with a floor price of $25 per unit) and $275 million in cash, partially funded through the proceeds from the disposition of communities that no longer fit the long term growth profile of the Company.
Tom Toomey, president and CEO of UDR, commented: “We see significant value creation opportunities through the implementation of our operating platform as the building is still pre-stabilized following the complete renovation in 2008. Dwell95 provides a unique opportunity to further our presence in the Financial District, an area of Manhattan that we believe will continue to benefit from the redevelopment of the World Trade Center and surrounding areas."
Located on Wall Street between Water and Front Streets, and one block east of the Company’s 493-home community, 10 Hanover Square, the 22-story building was formerly the corporate headquarters of J.P. Morgan prior to being converted to residential in 2008. The building features condo-quality interior finishes for its studio, one- and two- bedroom apartment homes which average 668 square feet. The finishes include wood flooring, custom cabinetry, marble countertops and backsplashes, high-end appliances and stackable washer/dryer units. Residents enjoy a 24-hour doorman and concierge service, fitness center, resident lounge, rooftop deck and on-site parking.
The community is currently 93% occupied and has an average income per occupied home of over $3,100 per month. The Company estimates the purchase price, excluding the 7,526 square feet of retail space and the 97-space parking garage, at $550,000 per apartment home.
The building was redeveloped under the 421-g Program and will receive a tax abatement until 2023, as well as an exemption from real estate taxes until 2021, both of which include a four year phase out period. The Company anticipates that the closing will occur on or before August 31, 2011.
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 June 30, 2011, UDR owned or had an ownership position in 60,386 apartment homes including 1,939 homes under development. For over 39 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates.