MetLife and UDR Strike an Asset Swap
Posted on 08/13/2019
MetLife Investment Management inked a deal with Denver-based UDR, Inc. in which 10 properties as well as some land sites at Vitruvian Park and a development project will be folded into an existing joint venture between the two companies. The UDR/MetLife Investment Management Joint Venture will purchase a 50% ownership stake in 10 properties, one community under development and four development land sites valued at US$ 1.1 billion, or US$ 557 million for UDR’s share.
In addition, MetLife will buyout five properties already owned by the UDR-MetLife joint venture that is valued at US$ 645 million or US$ 323 million at UDR’s share to MetLife.
| Community | Location | Homes | Type | Urban / Suburban | Rev. per Occ. Home | Occup. | Age (Yrs) |
|---|---|---|---|---|---|---|---|
| Acquisitions (10 operating communities) | |||||||
| Strata | San Diego | 163 | High-Rise | Urban | $3,676 | 94.30% | 9 |
| Crescent Falls Church | Wash. D.C. | 214 | Mid-Rise | Suburban | 3,164 | 96.70% | 9 |
| Charles River Landing | Boston | 350 | Mid-Rise | Suburban | 2,982 | 97.20% | 9 |
| Lodge at Ames Pond | Boston | 364 | Garden | Suburban | 2,150 | 96.00% | 9 |
| Lenox Farms | Boston | 338 | Garden | Suburban | 3,025 | 96.00% | 10 |
| Vitruvian Park (4 commun.) | Dallas | 1,513 | Mix | Suburban | 1,641 | 94.90% | 6 |
| Towson Promenade | Baltimore | 379 | Mid-Rise | Suburban | 1,721 | 96.80% | 10 |
| Total/W. Avg. | 3,321 | $2,189 | 95.70% | 8 | |||
| Dispositions (5 operating communities) | |||||||
| Ashton Austin | Austin | 259 | High-Rise | Urban | $4,581 | 96.90% | 10 |
| The Olivian | Seattle | 224 | High-Rise | Urban | 4,330 | 97.10% | 10 |
| Current | San Diego | 144 | High-Rise | Urban | 3,244 | 96.60% | 11 |
| Acoma | Denver | 223 | High-Rise | Urban | 3,137 | 96.60% | 10 |
| 717 Olympic | L.A. | 151 | High-Rise | Urban | 4,087 | 91.60% | 11 |
| Total/W. Avg. | 1,001 | $3,936 | 96.00% | 10 |
“We are pleased to be acquiring these high-quality communities while also simplifying the UDR/MetLife Investment Management Joint Venture structure and increasing select 2019 earnings guidance ranges,” said Tom Toomey, UDR’s Chairman and Chief Executive Officer, in a press release. “The acquired communities are primarily located in markets targeted for expansion, are immediately accretive to our earnings, have operational upside and improve the diversification of our portfolio. Following the transaction, we look forward to continuing to partner with MetLife Investment Management on the remaining properties in the joint venture relationship.”
Post-close, the UDR/MetLife Investment Management Joint Venture will comprise 13 communities with 2,837 homes located in California, Boston, MA, New York, NY, and Philadelphia, PA.