Archstone-Smith Acquires 575-Unit Apartment
Community in the San Francisco Bay Area
DENVER – September 8, 2006 – Archstone-Smith (NYSE: ASN), one of the nation's largest apartment companies, today announced the acquisition of Jefferson at Bay Meadows, a 575-unit, 7-building community in San Mateo, completed in 2003. Representing a purchase price of $220.6 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.
"Jefferson at Bay Meadows is part of an exceptional mixed-use community which includes Whole Foods, Starbucks and hundreds of high paying jobs at the Franklin Resources campus," said R. Scot Sellers, chairman and chief executive officer. "The integration of these very desirable features in a prestigious Peninsula location offers a unique home for our residents."
Jefferson at Bay Meadows is located one block from U.S. Highway 101 and less than one mile from Calif. Highway 92, which connects the Peninsula with the East Bay, giving residents quick access to all major employment centers on the Peninsula, in the city of San Francisco (19 miles North) and in the Silicon Valley (7 miles South). The community is located eight miles south of the San Francisco International Airport, within close proximity to the San Mateo Caltrain station, directly across the street from a Whole Foods supermarket, several retail shops and restaurants and Park Place at Bay Meadows – a business park featuring more than 200,000 square feet of Class A office space. In addition, the community is just one mile from the Hillsdale Shopping Center, featuring Nordstrom, Macy's, Mervyn's and Sears.
Jefferson at Bay Meadows features almost 14,000 square feet of on-site, ground floor retail space occupied by a variety of businesses, including a Starbucks Coffee, Kindercare Learning Center and Quiznos Sub. The property's one-, two-, and three-bedroom apartments feature generous floor plans, nine foot ceilings, washers/dryers in every unit and patios/balconies. Residents also enjoy an on-site fitness center, outdoor pool, business center with conference room, clubhouse, theater room, on-site parking garage and landscaped courtyards. 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 $19.3 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 July 31, 2006, Archstone-Smith owned or had an ownership position in 350 communities, representing 88,365 units, including units under construction.
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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.