Archstone-Smith, Denver, is acquiring a portfolio of 30 multifamily communities from affiliates of Oakwood Worldwide, Los Angeles, for a total consideration of about $1.4 billion.The real estate investment trust said it expects the acquisition to strengthen its position in many submarkets in which it already has a "dominant ownership position," considering that over 40% of the portfolio is within walking distance of communities it already owns. Archstone said about 70% of the portfolio is located in its core markets, including Southern California; Washington, D.C.; Boston; Chicago; and Seattle. To fund the acquisition, the multifamily REIT is planning to tap its cash available, proceeds from the sale of some other assets, and debt -- including the assumption of outstanding mortgage debt on the properties. Archstone will directly manage 15 of the properties, and Oakwood will lease back and continue to manage the rest for a seven-year period, the REIT said.
