Archstone takes Manhattan portfolio to $1.2 billion.Archstone-Smith announced the acquisition of two high-rise apartment communities, adding nearly 500 units to its Manhattan portfolio. The company acquired The Aston, a 266-unit community in Manhattan's Chelsea neighborhood, for $195.0 million, and The Foundry, a 222-unit community in Manhattan's Clinton neighborhood, for $87.6 million. "We entered the Manhattan market in 2002 with the intention for it to become a significant component of our national portfolio," said R. Scot Sellers, chairman and chief executive officer. "We are extremely pleased to expand our presence in this important market in such a meaningful way. Manhattan has extremely high housing costs, and nearly 70% of households in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. are renters, making the market exceptionally attractive to apartment owners." With these acquisitions, Archstone-Smith owns seven apartment communities in the New York City metropolitan area, including The Sonoma in Murray Hill, The Park Hudson on West End Avenue, Hudson Park in Hoboken, Archstone Westbury on Long Island and Archstone Stamford in Fairfield County. In addition, the company recently announced plans to develop The Mosaic, a 627-unit community in Manhattan's Clinton neighborhood. Including its operating communities and The Mosaic development, the company's committed total expected investment to the New York City metropolitan area totals $1.2 billion and 2,733 units. Built in 2004, The Aston is a 266-unit community with high-quality street-level retail with tenants that include Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. and HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) , as well as a 57-space garage. This 38-story community offers studio, one- and two-bedroom apartments as well as a penthouse residence. The community is located in Chelsea on 6th Avenue between 27th and 28th Streets. The Foundry is a 222-unit community built in 2001 at the intersection of 10th Avenue and 55th Street. Offering studio, one- and two-bedroom apartments, this 12-story community is in Manhattan's Clinton neighborhood, one of the fastest-growing residential areas of the city. The equity for these acquisitions will be funded with tax-deferred exchange proceeds from dispositions of non-core assets. Archstone-Smith also assumed $95.5 million of floating rate tax-exempt bond Tax-exempt bond A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax. tax-exempt bond See municipal bond. debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay provided by The New York State Housing Finance Agency The New York State Housing Finance Agency (HFA) was created in 1960 as a public benefit corporation for the purpose of providing safe and sanitary housing accommodations at rental rates affordable to persons and families of low income. (HFA HFA Harvard Film Archive (Harvard University) HFA Harry Fox Agency, Inc. HFA Housing Finance Agency (District of Columbia government) HFA Hyogo Framework for Action HFA High-Functioning Autism ) at an estimated all-in interest rate of 3.2% for The Aston acquisition. It took $55.1 million of floating rate tax-exempt bond debt financing from The New York City Housing Development Corporation (HDC (Hard Disk Controller) See disk controller. HDC - Disk Controller ), with an estimated all-in interest rate of 3.3% for The Foundry acquisition. |
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