Equity Residential acquires 679-unit, 40-story apartment tower in San Diego for US$200M; 2009 building was originally developed as condominiums, is 22% occupied
September 28, 2010
– Equity Residential (NYSE: EQR - News) today announced that the company has acquired Vantage Pointe in San Diego, California for $200 million.
Vantage Pointe, located in Downtown San Diego, is a 40-story high rise featuring 679 apartment units, 26,425 square feet of retail space and 968 underground parking spaces. The purchase price values the apartment units at approximately $291,000 per unit and $348 per square foot of rentable apartment space.
The property was developed as a condominium project and completed in 2009. Amenities include a clubhouse, rooftop pool and sundeck, fitness center and theater. Equity Residential purchased 100% of the units, which are being operated as rentals and are currently approximately 22% occupied. The company has begun a comprehensive marketing and leasing campaign and expects a year-three stabilized yield of approximately 7%.
“The acquisition of Vantage Pointe is another example of the opportunities we have seized this year to add high quality, well-located assets to our portfolio at prices well below replacement cost,” said David J. Neithercut, Equity Residential’s President and CEO. “And, as we have shown with the success that we have had at our 425 Mass property in Washington, D.C., we are able to tackle large, complex deals to create long term value for our shareholders.”
Equity Residential now owns and operates 14 properties, consisting of 4,963 apartment units, in the San Diego market.
Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 479 properties located in 21 states and the District of Columbia, consisting of 134,484 apartment units. For more information on Equity Residential, please visit our website at www.equityapartments.com.
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