UDR Enters $650M Joint Venture

United Dominion Realty Trust, a Richmond, Va.-based multifamily real estate investment trust, has entered into a $650 million joint venture with an institutional partner.The venture will own a portfolio of 3,690 homes located in nine Texas multifamily communities in Austin, Dallas, and Houston, and another 320 homes under development in Dallas, UDRT reported. In addition to a $350 million initial investment from the UDRT multifamily portfolio, the joint venture is looking to acquire up to $300 million in additional properties. The REIT will retain a 20% interest in the venture. "Combined, these markets have added 152,800 jobs in the past 12 months," said Thomas W. Toomey, UDRT's president and chief executive officer. The joint venture has secured a $232 million, seven-year, interest-only, 5.61% nonrecourse mortgage on the properties. The joint venture is looking to acquire additional stabilized properties from third parties, initially in targeted Texas markets. UDRT is managing the properties on behalf of the venture. The company can be found online at http://www.udrt.com.