Sam Zell receives his $150 million reward for Archstone maneuvers

TRD New York /
Jun.June 07, 2012 04:30 PM

Sam Zell’s Equity Residential received the $150 million in termination fees from Bank of America, Barclays Bank PLC and Lehman Brothers Holdings to finish the sale of Archstone to Lehman, GlobeSt.com reported. Also yesterday, Lehman confirmed its completion of the purchase of Archstone’s remaining stake, grabbing the final 26.5 percent interest for $1.5 billion.

In a statement, Lehman said that it did not want Equity to get a piece of Archstone, saying “both acquisitions were made to protect and preserve the value of the Archstone enterprise.”

As previously reported, Equity Residential bid $1.33 billion to get half of the non-Lehman-owned stake of Archstone. Zell had bid higher and higher amounts for the remaining stake for the apartment portfolio, and though he didn’t win the properties, he did take away a huge profit. Equity spent a total of $5 million to put together the bids that ultimately netted it $150 million from its competitors all while forcing Lehman to pay millions more to acquire the asset.

Zell would have to return the money if he acquires a majority of the portfolio by Oct. 4. [GlobeSt]


Related Articles

arrow_forward_ios
Daily Digest Thursday

Worker killed at Lam Group construction site, Uber signs WTC lease: Daily digest

Zell on Trump: The president’s tax documents showing massive losses “don’t tell much of a picture”

Zell on Trump: The president’s tax documents showing massive losses “don’t tell much of a picture”

“Rent control is a risk, just like climate change:” Equity Residential unbowed by affordable advocates

“Rent control is a risk, just like climate change:” Equity Residential unbowed by affordable advocates

National Cheat Sheet: House flips hit pre-crisis levels, ‘cannabiz’ entices the real estate sector… & more

National Cheat Sheet: House flips hit pre-crisis levels, ‘cannabiz’ entices the real estate sector… & more

Jungle leaves background

Sam Zell talks “jungle” entrepreneurs, “dearth” of mergers

WeWork is too big to avoid public responsibilities: Sam Zell

WeWork is too big to avoid public responsibilities: Sam Zell

Equity Residential to part with 800 Sixth for $240M

Equity Residential to part with 800 Sixth
for $240M

The Closing: Sam Zell

The Closing: Sam Zell

arrow_forward_ios