Equity Residential appears to have a $119 million contract on The Ellington.
WASHINGTON, DC—Maybe Equity Residential is not so bearish on the multifamily market after all. A source tells GlobeSt.com that the Chicago-based REIT has a contract pending on The Ellington, a 190-unit apartment building at 1301 U St., NW. The contracted purchase price is $119 million or $626,316 per unit. A spokesperson for Equity Residential told GlobeSt.com that it doesn't comment on rumors.
The current owner and seller of the apartment building is TIAA-CREF, which acquired it in 2011 for $100 million. The building also has about 17,000-square feet of retail, 90% of which is occupied. The apartments are about 94% occupied.
Separately, outside from our source, Commercial Real Estate Direct, reported the same transaction was in the works.
Last week Equity Residential closed on its sale of 23,262 apartment units to Starwood Capital Group for $5.365-billion. The transaction represented about one quarter of Equity Residential's portfolio and it has been widely assumed that CEO Sam Zell was disposing of the portfolio because he felt the apartment market has peaked.
The sale included ten assets in the 10 area: the Canterbury, Northlake and Oak Mill in Germantown, MD; Governors Green and Mosaic at Largo in Bowie, MD; Oaks at Falls Church in Falls Church, VA; Scarborough Square in Rockville, MD; Stoney Ridge in Woodbridge, VA; and Westchester Pavilions in Waldorf, MD.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
