MetLife JV Closes $1.8B Transaction
The partnership reduced the size of its venture in a multi-faceted deal.
Image via Multi-Housing News
A joint venture between UDR, a multifamily REIT, and MetLife Investment Management has closed on a previously announced deal valued at roughly $1.7 billion. The transaction served to simplify the partnership between the two companies, which first formed in 2010 when they partnered to buy seven communities.
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In a multi-faceted transaction, the venture acquired a 50 percent interest in 10 communities with a total of 3,321 units, one community under development and four accretive development land sites. Altogether, that portion of the deal was valued at $1.1 billion. A second part of the deal saw UDR sell its 50 percent ownership in five JV communities totaling 1,001 units, valued at $645 million.
Following the deal’s close, the joint venture will operate 13 remaining multifamily properties. Also included in the transaction was MetLife’s purchase of five multifamily properties in the Seattle, Denver, Austin, Los Angeles and San Diego markets.
In prepared remarks, UDR Chairman & CEO Tom Toomey said the new communities purchased are in markets targeted for expansion and furthers the diversification of the company’s portfolio.
MetLife Investment Management has had its hand in several deals across the country over the past year. Recent projects include the company’s mixed-use project Midtown Union in Atlanta, a development that will include 350 apartment units as well as 500,000 square feet of office space and a 20-story hotel. In Portland, Ore., MetLife recently partnered up with Alamo Manhattan to build Block 40, a 232-unit luxury residential property in the South Waterfront neighborhood.
