Archstone-Smith Acquires a 311-unit Apartment Community in the
San Francisco Bay Area
Strategic Acquisition Increases Company's Commitment in the
San Francisco Bay Area to $1.1 Billion
DENVER – February 1, 2006 – Archstone-Smith announced that it has acquired a 311-unit community in Cupertino, Calif. in the heart of the Silicon Valley, which is home to many of the largest technology companies in the country, including Apple Computer, Yahoo!, eBay and Hewlett Packard. Representing a purchase price of $88 million, the acquisition was funded primarily through tax-deferred exchange proceeds from dispositions of apartment communities that no longer meet Archstone-Smith's long-term investment criteria. Currently, the company's total expected investment in the greater San Francisco Bay Area totals approximately $1.1 billion. The community's name will change to Archstone Cupertino and will operate under the company's Archstone brand.
"The Silicon Valley is widely recognized as the technology capital of the world, home to more than 7,800 high-tech companies that employ more than 320,000 people," said R. Scot Sellers, chairman and chief executive officer. "Archstone Cupertino is very consistent with our core investment strategy, in an area with a strong economic base, very expensive single family homes, and essentially no land on which to build new housing."
Built in 1998, Archstone Cupertino enjoys an exceptional location in Santa Clara County, one of the strongest residential markets in the San Francisco Bay area. In addition to its excellent proximity to major employers in the Silicon Valley, the community is only minutes from the San Jose Airport, Interstate 280 and Stevens Creek Freeway, and is just one mile from Vallco Fashion Park, one of the area's largest regional shopping centers. Archstone Cupertino offers one-, two- and three-bedroom apartments with amenities that include vaulted ceilings, crown molding, fireplaces, built-in computer desks, a pool and a full-service fitness center.
Archstone-Smith (NYSE: ASN), an S&P 500 company, is a recognized leader in apartment investment and operations. With a current total market capitalization of $16.9 billion, the company's portfolio is concentrated in many of the most desirable neighborhoods in the Washington, D.C. metropolitan area, Southern California, the San Francisco Bay Area, the New York City metropolitan area, Boston, Southeast Florida, Chicago, and Seattle. The company continually upgrades the quality of its portfolio through the selective sale of assets, using proceeds to fund investments in assets with even better growth prospects. Through its two brands, Archstone and Charles E. Smith, Archstone-Smith strives to provide great apartments and great service to its customers – backed by unconditional service guarantees. As of December 31, 2005, Archstone-Smith owned or had an ownership position in 257 communities, representing 86,930 units, including units under construction.
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Archstone-Smith's archived press releases are available on its web site at www.ArchstoneSmith.com or may be obtained by calling (800) 982-9293.
In addition to historical information, this press release contains forward-looking statements and information under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Archstone-Smith operates, management's beliefs and assumptions made by management. While Archstone-Smith management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management's control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this press release and supplemental information. See "Risk Factors" in Archstone-Smith's 2004 Annual Report on Form 10-K for factors that could affect Archstone-Smith's future financial performance.