Equity Residential has teamed up with AvalonBay Communities to acquire a portfolio of US apartment properties owned by Archstone. Equity Residential and AvalonBay are acquiring the portfolio from the Lehman Brothers estate for approximately $16 billion. Morrison & Foerster represented Equity Residential in the transaction.
In the largest real estate deal this year, Morrison & Foerster LLP is representing leading residential real estate investment trust Equity Residential (NYSE: EQR) in a joint agreement with AvalonBay Communities to acquire a vast portfolio of U.S. apartment properties owned by Archstone. Equity Residential and AvalonBay are acquiring the portfolio from the Lehman Brothers estate for approximately $16 billion. The deal marks the largest real estate transaction since Blackstone Group’s $26 billion acquisition of Hilton Worldwide Inc. in 2007.
Equity Residential’s stake, around 60% of the Archstone portfolio, includes 78 properties in major U.S. markets, including Washington, D.C. San Francisco, Los Angeles, New York, Boston, Seattle, South Florida and elsewhere. The total number of apartments going to Equity Residential is more than 23,000 units. The company will additionally acquire properties under development in Washington, D.C., San Francisco, Phoenix and South Florida.
The deal is expected to close in the first quarter of 2013.
Washington, D.C.-based corporate and securities partner David Slotkin led Morrison & Foerster’s deal team along with partners Thomas Fileti (Los Angeles); Peter Dopsch, Dominick Bozzetti, and Spencer Klein (New York), and associates Jacob Bernstein, Joshua Pierce, Rada Blumkin, Amanda Hines, Wells Miller and Henrique Canarim.
Here is a summary of the operating properties Equity Residential is slated to acquire.
All other markets
In May, Morrison & Foerster represented Equity Residential in obtaining $150 million in fees when Lehman exercised its right of first offer blocking Equity Residential’s proposed purchase of Bank of America and Barclays Bank’s 26.5 percent ownership interest in Archstone.
“We are pleased to once again work with Equity Residential in this high-profile acquisition of trophy residential properties,” Mr. Slotkin said
We are Morrison & Foerster — a global firm of exceptional credentials. Our clients include some of the largest financial institutions, investment banks, Fortune 100, technology and life science companies. We’ve been included on The American Lawyer’s A-List for nine straight years, and Fortune named us one of the “100 Best Companies to Work For.” Our lawyers are committed to achieving innovative and business-minded results for our clients, while preserving the differences that make us stronger.