DENVER, CO - UDR, Inc., a leading multifamily real estate investment trust, announced today that its joint venture with Kuwait Finance House (“KFH”) has acquired 1301 Thomas Circle in Washington, D.C. for $154 million. The 292-home luxury apartment community is located in the Logan Circle neighborhood near the 14th Street Corridor and less than a mile from the White House.
1301 Thomas Circle, a ten-story building constructed in 2006, is located just minutes from the Mt. Vernon Square and McPherson Metro Stations. Additionally, it is just a short walk from two of the Company’s other operating communities, Andover House and View 14, as well as its development project, 2400 14th Street. Following the close of this transaction, the Company will own, or have an ownership interest in, 21 communities consisting of 5,934 apartment homes in the metropolitan Washington, D.C. market.
Community amenities include a rooftop pool and outdoor kitchen, fitness center, clubhouse, private courtyard, business center, 24-hour concierge and a 256-space parking garage. Condominium-quality finishes include high-end appliances, granite countertops, maple cabinetry, large bay windows, nine-foot ceilings and stacked full-size washer/dryers. The community’s studio, one- and two- bedroom apartment homes average 852 square feet, are 94% occupied and have an average income per occupied home of $2,740 per month.
The acquisition is being funded through a five-year, 2.99%, $90 million interest-only loan from Fannie Mae, a 70% equity contribution by KFH of $44.8 million and a 30% equity contribution by the Company of $19.2 million. The Company has the opportunity for enhanced returns on the acquisition through fees and promotes earned through the joint venture with KFH.
Since its formation in 2009, the joint venture has invested $281 million in metropolitan Washington, D.C. through the acquisition of three operating communities containing 660 homes. Following the acquisition of 1301 Thomas Circle, there will be approximately $169 million of remaining investment capacity under the terms of the joint venture agreement.
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 September 30, 2011, UDR owned or had an ownership position in 62,037 apartment homes including 2,255 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.