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REIT Chief Says Exodus Comes Just In Time

CHICAGO-Having sold Plaza 440 in River North for $130 million earlier this year, Englewood, CO-based Archstone-Smith sheds two properties totaling 728 units in Arlington Heights and Willowbrook as it sees signs of a cracking condominium-conversion market.

By Mark Ruda | Updated on July 27, 2005

(To read more on the multifamily market, click here.)

CHICAGO-Despite multifamily buildings now selling at capitalization rates more commonly seen in Southern California and South Florida, Archstone-Smith chairman and chief executive officer R. Scot Sellers believes his REIT began shedding assets here at just the right time. “We’re glad we sold when we did,” says Sellers during the Englewood, CO-based company’s earnings conference call Tuesday, noting his company has become an aggressive seller here and in non-core markets for the past 12 months.

Archstone-Smith recently sold two suburban apartment communities following its $130-million sale of Plaza 440 in River North earlier this year. The REIT still owns 3,158 units in the market, but its portfolio no longer includes a 240-unit property in northwest suburban Arlington Heights as well as a 488-unit asset in southwest suburban Willowbrook. The company got $87.8 million for the two properties, or $121,604 per unit.

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