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Equity Residential
EQR today announced that the company has entered
into an agreement to sell a portfolio of assets to a joint venture of the Real
Estate Principal Investment Area of Goldman, Sachs & Co. and Greystar Real
Estate Partners LLC for $1.5 billion. The transaction values the 27 properties
at approximately $187,000 per apartment unit and a capitalization rate in the
mid to high 5% range. Per the agreement, Equity Residential has granted the
buyer the right to exclude up to 8% of the value of these assets from their
purchase. As a result, Goldman Sachs and Greystar have the contractual right
to acquire all of the assets for $1.5 billion but are obligated to purchase
not less than $1.38 billion of assets. The buyers have deposited $150 million
in escrow and have waived their due diligence contingency. The transaction is
expected to be completed in two separate closings, both of which will occur in
the first quarter of 2013.
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Posted In: NewsAsset Sales
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