Who owns archstone properties

Lehman and real estate management company Tishman Speyer acquired Archstone Smith at the height of the real estate boom. As real estate values fell and credit began to dry up going into the financial crisis, Archstone could not sell buildings to repay some of its loans. N owned a combined 53 percent. After the financial crisis, as Lehman liquidated in bankruptcy, the firm initially sought to spin off Archstone, but the other banks balked. The deals were completed in June.

At the time Equity Residential also tried to buy all of Archstone. Lehman said the transaction price represented a significant return on its purchase of the remaining stakes it bought this summer. David Neithercut, Equity Residential's CEO, said in a conference call that his company chose to partner with AvalonBay because it sought "a strategic partner, with complementary interests.

Milligan, analyst with Raymond James, noted that Equity and AvalonBay were always the only two potential strategic partners "with the balance sheet strength and operating scale to pull off such a complex transaction.

Under the agreement, Equity Residential will acquire 78 properties that consist of 23, apartment units. AvalonBay will purchase 66 apartment communities that include 22, apartment homes. AvalonBay's acquisition includes six communities under construction. The deal eliminates "a major overhang," according to Anderson. REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors.

These real estate companies have to meet a number of requirements to qualify as REITs. The value of the transaction includes the assumption and refinancing of Archstone's outstanding debt and excludes transaction costs. Its stock trades at about 24 times Wall Street's earnings estimates for , above the sector average of Scot Sellers in a prepared statement.