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Equity Residential Announces Agreement To Sell 23,000 Apartment

The following excerpt is from the company's SEC filing.

Units to Starwood Capital Group for $5.365 Billion

Will Exit South Florida and Denver Markets

Chicago, IL October 26, 2015

Equity Residential (NYSE: EQR) today announced that the company has entered into an agreement to sell 72 properties consisting of 23,262 apartment units to Starwood Capital Group, through a controlled affiliate, for $5.365 billion, or approximately $230,634 per unit on average, and a capitalization rate of 5.5%. The sale is expected to close in the first quarter of 2016.

This is an extremely opportune time for Equity Residential to monetize our investments in t his portfolio of assets, said David J. Neithercut, Equity Residentials President and CEO. In doing so, not only have we demonstrated the enormous value created for our shareholders through the realization of an unlevered internal rate of return of 11.1%, but we have also narrowed our focus which will now be entirely directed towards our core, high-density urban markets that will fulfill our strategic vision and drive EQR performance for many years to come.

The Portfolio

Equity Residential is selling assets in the following markets:

Properties

10,742

Washington DC

Seattle

Inland Empire, CA

Sale of Additional Assets

In 2016, Equity Residential intends to sell an additional 26 assets located in various submarkets, consisting of 4,728 apartment units, 3,364 of which are all of the companys assets in Connecticut and in non-core submarkets in Massachusetts. The company expects to sell these...


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