Experts: $22B M&A Deal Could Happen Again

Anderson

NEW YORK CITY-Following on the heals of Archstone-Smith Trust’s recent closing on the acquisition by a partnership by Tishman Speyer Real Estate Venture VII LP and Lehman Brothers Holdings Inc., multifamily insiders and REIT analysts say there could be more deals this size to come. Insiders note that although it seems potential multifamily borrowers are sitting on the sidelines for now, some say the market is so unpredictable, nothing should be ruled out.

While such deals are still a good bet, not for the near term, and Richard Anderson, a REIT analyst at BMO Capital Markets, tells GlobeSt.com not to expect to see a handshake of this size for a while. “There is too much uncertainty in the market right now for this type of large scale activity,” he says. “When things settle down, potential multifamily borrowers will start thinking about making deals this size, but I project they will be in pause mode well into 2008.”

The $22-billion transaction he is referring to was “all about timing,” he noted. It is the largest public-to-private M&A transaction in the multifamily REIT sector as of yet and “buyers had to really go to the earth to get it done.”