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Equity Residential Shopping 12,527 Units

CHICAGO-The largest US multifamily rental REIT hopes to sell two large portfolios next year for $700 million to $750 million, president and CEO Douglas Crocker II says. Another $245 million in deals are in the works.

By Mark Ruda | Updated on November 07, 2001

CHICAGO-Equity Residential Trust hopes to be a seller in the upcoming quarters, including two portfolio deals consisting of 12,527 units that the US’ largest multifamily rental REIT hopes to sell for a price north of $700 million. President and CEO Douglas Crocker II says Equity Residential has 1,945 units under contract for about $81 million as well as letters of intent on 2,470 units for $144 million.

While shopping more than $700 million worth of properties, the REIT is being conservative in its 2002 projections, forecasting only $500 million in sales in its 225,000-unit portfolio. Meanwhile, Crocker sees conditions improving on the buying side of the multifamily rental market.

“The inability to purchase properties at reasonable cap rates in the first nine months appears to have shifted as pension funds have withdrawn from B-plus and A-minus multifamily product,” Crocker says. However, he adds capitalization rates for lower quality properties have only shifted slightly.

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