Equity Residential Acquires Two Manhattan
Luxury Apartment Towers; Signs Contract to
Acquire a Third
February 01, 2010 08:40 AM Eastern Time
CHICAGO--(EON: Enhanced Online News)--Equity Residential (NYSE: EQR) today announced that, as part of a
three-property transaction in New York City, the company has acquired two high-rise apartment towers and has
entered into a contract to acquire a third apartment tower for a combined purchase price of $475 million. These
luxury properties are located in highly desirable residential areas of Manhattan and consist of 910 apartment units,
23,339 square feet of retail space and 50,000 square feet of parking space. The purchase price equates to
approximately $470,000 per apartment unit and $545 per square foot of rentable apartment space. The initial
capitalization rate on the combined transaction is 5.52%. The acquisition of these three properties is being funded
primarily from disposition proceeds.
The acquired properties, which closed on January 29, 2010, are: River Tower, a 38-story apartment tower located
at Sutton Place and 54th Street in the Sutton Place neighborhood of Manhattan, constructed in 1982, consisting of
323 apartment units and a 36,000 square foot parking garage; and 777 Sixth Avenue, a 32-story tower located at
Sixth and 27th Street in Chelsea, constructed in 2002, consisting of 294 apartment units and 10,281 square feet of
retail.
The company has also signed a definitive contract to purchase Longacre House, a 26-story apartment tower located
at 305 W. 50th Street at Eighth Avenue in Midtown, constructed in 2000, consisting of 293 apartment units, 13,058
square feet of retail space and a 14,000 square foot parking garage. While the transaction is subject to customary
closing conditions, the company anticipates closing in the second quarter of 2010, but no later than May 1 when the
existing first mortgage is open for prepayment at par.
“We are very pleased to add these premier properties, at prices well below replacement cost,