Archstone deal leads to apartment stock growth

Miami /
Dec.December 03, 2012 04:30 PM

Last week’s revelation that Sam Zell’s Equity Residential and AvalonBay Communities were buying Archstone for $16 billion has helped multi-family stocks rally, Businessweek reported.

Before the sale, Lehman Brothers hand been planning to take Archstone public in a $3.45 billion initial public offering, but with the new acquisition,  apartment stocks ended their 13 percent slide since their July peak.

“The storm cloud has been lifted with the cancellation of the IPO,” Dean Frankel, senior portfolio manager at Urdang Capital Management in Plymouth Meeting, Pennsylvania, said.

The Bloomberg Apartment REIT Index, led by Equity Residential and AvalonBay, had almost quadrupled from its March 2009 low to its July peak this year. But since July it had declined enough to erase any gains in 2012.

The sale has led to a increased investment, with 19 million shares sold by Equity Residential at $54.75 each — still 17 percent less than its July 17 high of $65.72 — to fund the sale.

“There’s a nice opportunity for the stocks to rebound,” Kenneth Weinberg, senior portfolio manager at CBRE Clarion in Radnor, Pennsylvania, said. [Businessweek]Christopher Cameron


Related Articles

arrow_forward_ios
From left: Jim Cohen, Nancy Corey, Nathan Zeder, Alicia Cervera Lamadrid, Phil Gutman and Mike Pappas (iStock)
South Florida’s pandemic-fueled residential market poised for bull run in 2021
South Florida’s pandemic-fueled residential market poised for bull run in 2021
Kathleen DuRoss Ford and 300 North Lake Way (Getty, Google Maps)
Kate Ford’s Palm Beach estate sells for $55M
Kate Ford’s Palm Beach estate sells for $55M
Oprah Winfrey and (inset) Lawrence Stroll over the unit (Getty)
You get a condo! Billionaire Lawrence Stroll sells Oprah’s former Fisher Island penthouse
You get a condo! Billionaire Lawrence Stroll sells Oprah’s former Fisher Island penthouse
Gables Town Colony apartment complex, Sue Ansel of Gables Residential
Gables Residential scores $85M loan for Boca Raton apartment complex
Gables Residential scores $85M loan for Boca Raton apartment complex
Broadstone City Center with Alliance Residential’s Bruce Ward and Nuveen CEO Jose Minaya
Nuveen pays $103M for West Palm luxury apartments
Nuveen pays $103M for West Palm luxury apartments
Edmund Ansin and the property (Credit: Google Maps)
Billionaire TV family sells Miramar property to Florida Crystals
Billionaire TV family sells Miramar property to Florida Crystals
Toscana apartments and Juan Porro of FCI Residential
Florida Crystals sells Margate rentals for $60M
Florida Crystals sells Margate rentals for $60M
From left: Andrea and Renzo Rosso
Diesel family dishes on Wynwood condo project
Diesel family dishes on Wynwood condo project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...