Archstone-Smith Acquires 322-Unit Apartment
Community in the San Francisco Bay Area
DENVER – July 6, 2006 – Archstone-Smith (NYSE: ASN), one of the nation's largest apartment companies, today announced the acquisition of The Benton, a 322-unit community in Fremont, Calif. built in 2003. Representing a purchase price of $79.6 million, the acquisition was funded primarily through tax-deferred exchange proceeds from dispositions of apartment communities that no longer meet the company's long-term investment criteria, and the assumption of $52.3 million of variable rate, tax-exempt bonds with an estimated all-in interest rate of 4.4%.
"The Benton is a well-located community in one of the strongest rental markets in the East Bay, just 15 miles north of the heart of the Silicon Valley and convenient to major employment centers in the Bay Area," said R. Scot Sellers, chairman and chief executive officer.
The Benton is located in the southern portion of the San Francisco East Bay, minutes from the Nimitz Freeway (Interstate 880) and Interstate 680, and is within walking distance to the Fremont BART station, providing quick access to all major employment centers in the San Francisco Bay Area and Silicon Valley. In addition, it is just one block from Fremont Central Park, a 450 acre regional park offering tennis and basketball courts, walking paths, sports fields and an 83-acre lake with boating and fishing accommodations. The community also features 15,000 square feet of on-site, ground floor retail space occupied by a Starbucks and a variety of other local businesses.
The Benton's one-, two-, and three-bedroom apartments include 10-foot/vaulted ceilings, washers/dryers, patios/balconies, walk-in closets and fireplaces in select units. Residents also enjoy an on-site fitness center, business center with conference room, pool/spa, billiards room and covered parking. The community will operate under the company's Archstone brand.
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 $18.3 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 May 31, 2006, Archstone-Smith owned or had an ownership position in 271 communities, representing 83,776 units, including units under construction.
Download a PDF of this release.
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 2005 Annual Report on Form 10-K for factors that could affect Archstone-Smith's future financial performance.