Archstone-Smith Acquires 360-Unit Apartment Community in the
San Francisco Bay Area
DENVER — October 30, 2006 — Archstone-Smith (NYSE:ASN) one of the nation's largest apartment companies, today announced the acquisition of Bay Landing, a 360-unit garden community in the San Francisco Bay Area submarket of Walnut Creek. Representing a purchase price of $75.6 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.
"Bay Landing is ideally situated in the economic center of Contra Costa County, home to more than 500,000 jobs in the medical, finance and technology sectors," said R. Scot Sellers, chairman and chief executive officer. "With this acquisition, together with Archstone Walnut Creek and Archstone Walnut Ridge, Archstone-Smith now owns 976 contiguous apartment units in the highly desirable Walnut Creek submarket, within a short walk of downtown. Since July 2005, we have invested an incremental $1.1 billion in fantastic locations around the San Francisco Bay Area, which now represents almost 10% of our portfolio, and we are excited about the long-term opportunities in this market."
Bay Landing is located less than one-half mile from Interstate 680, approximately two miles from Calif. Highway 24 and directly across the street from the Pleasant Hill BART station, giving residents quick, convenient access to all major employment centers in the East Bay and the city of San Francisco. The community is located less than three miles from Sun Valley Mall, which at 1.4 million square feet is one of the East Bay's largest regional shopping centers and is anchored by Macy's, Sears and J.C. Penny. In addition, Bay Landing is just three-and-a-half miles from Broadway Plaza, a 700,000 square foot shopping center featuring Nordstrom, Banana Republic and The Gap.
Bay Landing's studio, one-, and two-bedroom apartments feature generous floor plans, patios/balconies, walk-in closets and washers/dryers in every unit. Residents also enjoy an on-site fitness center, outdoor pool and spa, clubhouse and on-site parking garage. 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 $21.4 billion, the company's portfolio is concentrated in many of the most desirable neighborhoods in the Washington, D.C. metroplitan area, Southern California, the New York City metropolitan area, the San Francisco Bay area, Boston, Seattle, Southeast Florida and Chicago. The company continually upgrades the quality of its portfolio through the selective sales 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 September 30, 2006, the company owned or had an ownership position in 354 communities, representing 90,093 units, including units under construction.
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