MetLife and UDR Strike an Asset Swap

Posted on 08/13/2019

MetLife Investment Management inked a deal with Denver-based UDR, Inc. in which 10 properties as well as some land sites at Vitruvian Park and a development project will be folded into an existing joint venture between the two companies. The UDR/MetLife Investment Management Joint Venture will purchase a 50% ownership stake in 10 properties, one community under development and four development land sites valued at US$ 1.1 billion, or US$ 557 million for UDR’s share.

In addition, MetLife will buyout five properties already owned by the UDR-MetLife joint venture that is valued at US$ 645 million or US$ 323 million at UDR’s share to MetLife.

Community Location Homes Type Urban / Suburban Rev. per Occ. Home Occup. Age (Yrs)
Acquisitions (10 operating communities)              
Strata San Diego 163 High-Rise Urban $3,676 94.30% 9
Crescent Falls Church Wash. D.C. 214 Mid-Rise Suburban 3,164 96.70% 9
Charles River Landing Boston 350 Mid-Rise Suburban 2,982 97.20% 9
Lodge at Ames Pond Boston 364 Garden Suburban 2,150 96.00% 9
Lenox Farms Boston 338 Garden Suburban 3,025 96.00% 10
Vitruvian Park (4 commun.) Dallas 1,513 Mix Suburban 1,641 94.90% 6
Towson Promenade Baltimore 379 Mid-Rise Suburban 1,721 96.80% 10
Total/W. Avg.   3,321     $2,189 95.70% 8
Dispositions (5 operating communities)              
Ashton Austin Austin 259 High-Rise Urban $4,581 96.90% 10
The Olivian Seattle 224 High-Rise Urban 4,330 97.10% 10
Current San Diego 144 High-Rise Urban 3,244 96.60% 11
Acoma Denver 223 High-Rise Urban 3,137 96.60% 10
717 Olympic L.A. 151 High-Rise Urban 4,087 91.60% 11
Total/W. Avg.   1,001     $3,936 96.00% 10

“We are pleased to be acquiring these high-quality communities while also simplifying the UDR/MetLife Investment Management Joint Venture structure and increasing select 2019 earnings guidance ranges,” said Tom Toomey, UDR’s Chairman and Chief Executive Officer, in a press release. “The acquired communities are primarily located in markets targeted for expansion, are immediately accretive to our earnings, have operational upside and improve the diversification of our portfolio. Following the transaction, we look forward to continuing to partner with MetLife Investment Management on the remaining properties in the joint venture relationship.”

Post-close, the UDR/MetLife Investment Management Joint Venture will comprise 13 communities with 2,837 homes located in California, Boston, MA, New York, NY, and Philadelphia, PA.

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