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Equity Residential Expects Pick-Up in Condo Sales

CHICAGO-The multifamily rental REIT sells 338 condominiums for $92 million in the first quarter, booking a profit of nearly $14 million on those sales. However, Equity Residential's plans call for 1,800 units to sell this year.

By Mark Ruda | Updated on April 26, 2005

CHICAGO-While Equity Residential’s condominium sales were lower than expected in the first quarter, company officials expect that part of their business to pick up the rest of the year. Meanwhile, the REIT remains on track to buy $1 billion and sell another $1 billion in assets this year.

Equity Residential paid $284.2 million for nine properties totaling 2,232 units in the first quarter, which represents a capitalization rate of 5.6%. Meanwhile, the company’s sales totaled 2,674 units in 10 properties for $425.3 million, or a 4.4% cap rate.

However, 338 condominiums were sold during the first quarter for $92 million, booking a profit of nearly $14 million. Equity Residential is aiming to sell 1,800 units this year. Executive vice president David J. Neithercut, who succeeds president and chief executive officer Bruce W. Duncan next year, remains optimistic the company will hit its condominium sales goal this year.

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