UDRT and Aegon Form $210M JV

RICHMOND, VA-United Dominion Realty Trust has entered a joint venture agreement with Cedar Rapids, IA-based Aegon USA Realty Advisors Inc. to invest up to $210 million in multifamily development projects around the nation between now and 2005. Under the recently created arrangement, the majority of construction costs–anywhere from 70% to 80%–will be solicited from banking institutions. UDRT and Aegon will divide the remaining development expenses by providing 20% and 80% of that amount, respectively.

“This development venture is very similar to the successful program that we just concluded with Credit Suisse First Boston under which our company built five apartment communities with stabilized returns in the 9.8% to 10% range,” UDRT senior executive vice president and development head Mark Wallis explains in a statement. “This new program has the same benefits of a national operating platform combined with United Dominion’s development expertise and proven track record. Along with the announcement of the joint venture comes news of the partnership’s first development, a Houston apartment community that is scheduled to be available for leasing late next year. Copperfield Apartments will be developed for $29.2 million, with UDRT spearheading construction of the 504-unit complex.