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The
properties comprise a mix of 23,262 mid-rise and garden-style
apartment buildings, located in regions including South Florida,
Denver, Colorado, Washington D.C., Seattle and Inland Empire.
The markets have demonstrated strong rent growth of 5.4 percent
annually over the last five years, and are projected to
experience employment and income growth well above the forecast
national average, Starwood Capital said on Monday.
Equity Residential had 98,287 wholly-owned apartment units in
2014. The deal represents about a quarter of the apartment units
in the company's portfolio.
Starwood Capital said it would control more than 88,000
apartment units following the close of the deal to become one of
the largest owners of multifamily housing in the United States.
The deal is expected to close in the first quarter of 2016.
Starwood Capital has agreed to buy about 67,800 apartment units
over the past 12 months, including those from Equity
Residential.
Equity Residential said it intends to sell an additional 26
assets, consisting of 4,728 apartment units, in 2016.
Equity Residential plans to use the proceeds from the Starwood
Capital deal to pay a special dividend of between $9.00 and
$11.00 per share in the second quarter ending June.
Neal, Gerber & Eisenberg LLP was Equity Residential's legal
adviser on the deal.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Robin Paxton
and Maju Samuel)
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