UPDATE: Lexford Portfolio Could Net Equity Residential $1B

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

CHICAGO-When Equity Residential acquired Lexford Residential Trust’s portfolio in 1999, some observers were scratching their heads, recalled president and chief executive officer David J. Neithercut. However, the multifamily REIT could see a $1-billion-plus payday, he suggested Monday at Citigroup’s 2006 REIT CEO conference.

“This has been a terrific investment for the company,” said Neithercut, noting Equity Residential bought the entry-level housing portfolio at a 10.5% capitalization rate. “During the recession, this portfolio outperformed the rest of Equity Residential’s portfolio.”