NEW YORK CITY-AvalonBay Communities Inc. and Equity Residential have completed their previously announced acquisition of the assets and liabilities of Archstone Enterprise LP from Lehman Brothers Holdings Inc. The acquisition consists principally of a portfolio of high quality apartment communities in major US markets, as well as a handful of development parcels. EQR acquired approximately 60% of Archstone's assets and liabilities for about $9 billion, while AvalonBay's 40% share of the deal is valued at about $6.5 billion.

For its part of the Archstone acquisition, AvalonBay acquired 60 apartment communities, containing 20,089 apartment homes, including 1,198 units under construction; five parcels of land which would add another 1,414 units when developed; interests in joint ventures (which may be acquired on a deferred closing basis) which own 12 apartment communities; and a 40% ownership interest in a JV arrangement with EQR for non-core assets and residual liabilities that will be jointly managed until disposition or resolution.

EQR says it's acquired 71 wholly-owned stabilized operating properties with a total of 20,160 apartment units and two partially-owned and unconsolidated stabilized operating properties consisting of 768 apartment units with a budgeted average monthly rent of $2,681 per unit; three master-leased properties containing 853 apartment units; and four projects in various stages of construction for 964 units. Following the announcement of the deal this past November, AvalonBay sold $509.4 million worth of assets that originally were allocated to EQR; the latter's purchase price was adjusted accordingly.