Lasalle Investment Management and UDR announced the completion of a multifamily joint venture valued at approximately $510 million. The two companies are initially starting with a seed portfolio of four communities comprising 1,328 apartment units across four communities. The partners then plan to expand the holdings by acquiring "high-quality, well-located communities with operational upside," according to an announcement.

UDR sells a 49% interest in the properties, so continues to hold 51%, and also gets about $250 million in cash. Initially the venture has no debt, and according to Green Street, the joint venture doesn't plan to start using debt as "LaSalle — an Asian pension fund — is under allocated to real estate and has ample dry powder to deploy" and targets an approximately 7.5% unlevered internal rate of return.

The initial value is based on a low-5% effective forward yield. UDS said that it "expects the transaction to be accretive to FFOA and cash flow per share in the first year of the venture."