CHICAGO (AP) -- Equity Residential said Monday that it had agreed to sell 27 properties to a joint venture including Goldman, Sachs & Co. and Greystar Real Estate Partners LLC for $1.5 billion.
The Chicago-based investment firm said the sale helps eliminate assets in the markets it's trying to exit, as well as non-core assets in its key markets. Proceeds will help fund Equity Residential's acquisition of Archstone Enterprise LP.
Equity Residential, along with AvalonBay Communities Inc., is in the process of buying apartment building owner Achstone from Lehman Brothers Holdings Inc.'s estate for $6.5 billion in cash and stock.
The properties to be sold in Monday's deal include about 8,000 apartments. Under the agreement, the buyer has the right to exclude up to 8 percent of the value of the assets from their purchase. As a result, Goldman and Greystar have the right to buy all of the assets for $1.5 billion, but are only required to buy at least $1.38 billion.
The deal is expected to be completed in two separate closings, both of which will take place in the first quarter, Equity Residential said.
Equity Residential shares fell 12 cents to $57.13 in morning trading. Its shares have traded in a 52-week range of $53.25 to $65.72.
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