Archstone-Smith Acquires Two High-rise Apartment Communities in New York City
Posted: 2006-04-11 10:50:16
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DENVER, CO -- Strategic Acquisitions Make Archstone-Smith the Largest Public Owner of Apartments in Manhattan Archstone-Smith (NYSE:ASN), one of the nation's largest apartment companies, today announced the acquisition of two high-rise apartment communities, adding more than 450 units to its New York City metropolitan area portfolio. The company acquired The Marlborough House, a 270-unit, 35-story community in the Murray Hill neighborhood of Manhattan, for $165 million, and 180 Montague Street, a 192-unit, 33-story community in Brooklyn Heights, for $101 million. These acquisitions were funded primarily through tax-deferred exchange proceeds from dispositions of apartment communities that no longer meet the company's long-term investment criteria. Archstone-Smith is now the largest public owner of apartments in Manhattan. The company's New York City portfolio consists of 3,745 units, including units under development, representing a total expected investment of $1.8 billion in this market.
"New York City is an important component of our long-term strategy of owning apartment communities in highly desirable neighborhoods with expensive housing costs. We are very fortunate to have grown our presence in this market in such a meaningful way, and we are extremely pleased to be the largest public owner of apartments in Manhattan," said R. Scot Sellers, chairman and chief executive officer. "By virtue of their proximity to millions of jobs in the nation's two largest central business districts, Midtown and Wall Street, as well as their accessibility to other parts of the city, Marlborough House and 180 Montague are ideal additions to our New York City portfolio."
The Marlborough House is located in the Murray Hill neighborhood of Manhattan, one block north of Archstone East 39th (formerly The Sonoma) -- a community Archstone-Smith acquired in 2004. The community's Midtown location also offers convenient access to bus service, the Midtown Tunnel and FDR Drive. Apartments in The Marlborough House include large windows and wood floors, with balconies available on most units. The community also features 24-hour concierge service, glass-enclosed rooftop pool, fitness center, club room, large rooftop terrace, laundry facilities and a 125-space parking garage.
180 Montague is a Class A rental high-rise in Brooklyn Heights, New York -- the most desirable neighborhood in Brooklyn -- characterized by 19th Century brownstones mixed in with a vibrant, upscale retail presence that includes cafes, restaurants, boutiques and other retail establishments. The community is within one block of the Court Street subway and within two blocks of the Borough Hall subway, providing easy access to Wall Street and Midtown. The Brooklyn Bridge and Brooklyn-Queens Expressway are within four blocks of the community, providing convenient access to Manhattan, Long Island and other destinations in the Northeast. Apartments in 180 Montague feature hardwood floors and high-end finishes with modern appliances, and offer spectacular panoramic views of Lower Manhattan. The community also features 24-hour concierge service, fitness center, club room, sun terrace and a 76-space parking garage. In addition, residents can enjoy the convenience of an on-site, upscale grocer, "Garden of Eden," occupying the building's approximately 10,200 square feet of retail space.
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 $17.0 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, Chicago, Southeast Florida 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 March 31, 2006, Archstone-Smith owned or had an ownership position in 254 communities, representing 86,513 units, including units under construction.
Archstone-Smith's archived press releases are available on its web site at www.ArchstoneSmith.com or may be obtained by calling (800) 982-9293.
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.
Contact: H. Andrew Cantor
800-982-9293 / 303-708-5959
Notes: CONTACT: H. Andrew Cantor of Archstone-Smith, +1-800-982-9293, or
+1-303-708-5959
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