UDR INC. 
By UDR, Inc. (the "Company") (NYSE: UDR), a leading multifamily real estate investment trust, today announced that it has formed a new real estate joint venture with MetLife (UDR/MetLife II) wherein each party owns a 50 percent interest in a $1.3 billion portfolio of 12 operating communities containing 2,528 apartment homes.
The 12 communities in the joint venture include seven from the Companies' first joint venture with MetLife (UDR/MetLife I) formed on November 8, 2010, while the remaining five have been newly acquired by UDR/MetLife II. The newly acquired communities, collectively known as Columbus Square, are recently developed, high-rise apartment buildings located on the Upper West Side of Manhattan and were purchased for $630 million. Details on all 12 communities in UDR/MetLife II are:
| UDR/MetLife II Joint Venture |
Monthly Income | Product | ||||||||||||
| Location | Homes | Year Built | Home(1) | Occupancy(1) | Type | |||||||||
| Communities Contributed From UDR/MetLife I JV(2) | ||||||||||||||
Ashton Austin | Austin, TX | 259 | 2009 | $3,601 | 92.8% | High-Rise | ||||||||
Ashton Bellevue | Bellevue, WA | 202 | 2009 | $2,728 | 95.1% | High-Rise | ||||||||
TEN20 | Bellevue, WA | 129 | 2009 | $2,640 | 91.9% | High-Rise | ||||||||
Lodge at Foxborough | Foxborough, MA | 250 | 2009 | $1,862 | 92.4% | Garden | ||||||||
Lenox Farms | Braintree, MA | 338 | 2009 | $2,720 | 96.1% | Garden | ||||||||
Charles River Landing | Needham, MA | 350 | 2010 | $2,250 | 98.1% | Mid-Rise | ||||||||
Domus | Philadelphia, PA | 290 | 2008 | $3,000 | 98.3% | Mid-Rise | ||||||||
Total/Weighted Average | 1,818 | 2009 | $2,677 | 95.5% | ||||||||||
Columbus Square(3) | ||||||||||||||
801 Amsterdam | Manhattan | 100 | 2009 | $3,148 | 97.0% | High-Rise | ||||||||
775 Columbus | Manhattan | 56 | 2011 | $3,306 | 100.0% | (4) | High-Rise | |||||||
795 Columbus | Manhattan | 132 | 2011 | $4,013 | 95.5% | (4) | High-Rise | |||||||
805 Columbus | Manhattan | 63 | 2011 | $3,818 | 79.4% | (4) | High-Rise | |||||||
808 Columbus | Manhattan | 359 | 2009 | $4,223 | 97.5% | High-Rise | ||||||||
| Total/Weighted Average | 710 | 2010 | $3,924 | 95.6% | ||||||||||
| UDR/MetLife II Total/Weighted Average | 2,528 | 2009 | $3,027 | 95.5% | ||||||||||
|
(1) As of December 31, 2011
(2) Prior to the formation of UDR/MetLife II, UDR's weighted average ownership in these seven communities was 11.1% (3) 400,000 square feet of retail space and 392 parking spaces are not included in the acquisition (4) Leasing of 775 Columbus began in February 2011; 795 Columbus - June 2011; 805 Columbus - September 2011 | ||||||||||||||
Tom Toomey, president and CEO of UDR, commented, "We are pleased to be expanding our relationship with MetLife through the formation of a second joint venture that increases our ownership interests in high-quality apartment communities that were all acquired in off-market transactions. These latest transactions speak to the success of the first UDR/MetLife joint venture and the opportunities available to us to further grow our partnership with MetLife in the future."
"We're excited about this new joint venture, which enables us to increase our investment in high-quality, multi-family properties in top-tier markets," said Robert Merck, senior managing director and head of real estate investments for MetLife. "This joint venture is in line with MetLife's commercial real estate investment strategy and also builds upon our strong relationship with UDR. We look forward to continuing to work closely with UDR's experienced management team."
With the closing of UDR/MetLife II, the Company will own, have an ownership interest in or have under development nine communities consisting of 2,626 homes in Manhattan, nine communities consisting of 2,721 homes in the Boston metro area, and 14 communities consisting of 2,720 homes in the Seattle metro area.
UDR/MetLife II Joint Venture - Financial Details
Debt Financing:
The acquisition of Columbus Square by UDR/MetLife II has been partially funded through a combination of 10-year fixed- and floating-rate debt totaling $302.3 million at an average rate of 3.8 percent from Fannie Mae. Approximately 88 percent of this amount is fixed at a rate of 3.9 percent. In addition, the new joint venture assumed $363 million of debt associated with the seven communities contributed from the UDR/MetLife I joint venture. In total, the debt associated with the UDR/MetLife II joint venture carries a weighted average interest rate of 4.2 percent and a term of 9 years.
Fees and Other:
The Company serves as the general partner for UDR/MetLife II and earns property management, asset management and financing fees.
Columbus Square - Additional Details
Four of the five towers that comprise Columbus Square are located just one block from Central Park, are within close proximity to multiple subway stops, and encompass Columbus Avenue between 97th Street and 100th Street. The fifth tower is on Amsterdam Avenue and 100th Street, one block west of the other four buildings. As 98th Street and 99th Street do not connect through Columbus Avenue, Columbus Square boasts a unique neighborhood-like feel.
The five high-rises are well-amenitized with fitness centers, doormen, concierge services, nearly 90,000 square feet of landscaped, elevated outdoor terraces, resident lounges and a community pool. While not acquired by the venture, Columbus Square contains 400,000 square feet of street-level retail which includes name-brand tenants such as Whole Foods, Modell's, PetCo, Duane Reade and Starbucks. Residents have access to 392 third-party owned parking spaces as well.
Apartment home interior finishes are consistent with condo style product and include 9-foot high ceilings, plank white oak hardwood floors, floor-to-ceiling windows, stainless steel appliances, stone slab countertops in the kitchen, and marble vanity top and sills in the bathrooms. Many of the homes include a washer/dryer and home sizes average approximately 700 square feet. In addition, each of the buildings that comprise Columbus Square were developed under the 421a program and have received real estate tax abatements that range from 10 to 20 years.
UDR/MetLife I Joint Venture - Post Transaction Detail
With the closing of UDR/MetLife II, the original joint venture between the parties, UDR/MetLife I, now comprises 19 operating properties containing 3,930 homes as well as 10 vacant land parcels. Historical cost of the venture now stands at $1.8 billion and the Company's weighted average ownership interest in the UDR/MetLife I operating assets is now 12.6 percent and 4.0 percent for the land parcels in the venture. Remaining debt for UDR/MetLife I totals $717.4 million, carries a weighted average interest rate of 4.2 percent and a term of 8 years.
UDR Asset Disposition Update
During the fourth quarter of 2011, the Company sold 9 communities containing 2,331 homes for $275.4 million in total proceeds, bringing full-year 2011 asset dispositions to $593.9 million. At the time of the fourth quarter dispositions, total income per occupied home averaged $1,065 per month. The communities were located in a variety of markets including the Eastern Shore of Maryland, Raleigh, the East Bay area of San Francisco, the Inland Empire, San Diego, Houston and San Antonio.
Forward-Looking Statements
Certain statements made in this press release may constitute "forward-looking statements." Words such as "expects," "intends," "believes," "anticipates," "plans," "likely," "will," "seeks," "estimates" and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the impact of inflation/deflation on rental rates and property operating expenses, expectations concerning availability of capital and the stabilization of the capital markets, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule, expectations on job growth, home affordability and demand/supply ratio for multifamily housing, expectations concerning development and redevelopment activities, expectations on occupancy levels, expectations concerning the Vitruvian ParkSM development, expectations concerning the joint ventures with MetLife, expectations that automation will help grow net operating income, expectations on annualized net operating income and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws.
This release and these forward-looking statements include UDR's analysis and conclusions and reflect UDR's judgment as of the date of these materials. UDR assumes no obligation to revise or update to reflect future events or circumstances.
About UDR, Inc.
UDR, Inc. (NYSE: UDR), an S&P 400 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of September 30, 2011, UDR owned or had an ownership position in 62,037 apartment homes including 2,255 homes under development. For over 39 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. Additional information can be found on the Company's website at www.udr.com.
UDR, Inc.
Chris Van Ens, 720-348-7762
cvanens@udr.com
