Joint Venture Formed to Recapitalize Two Archstone Apartment Properties

Washington, D.C.--Allianz Real Estate and the Canada Pension Plan Investment Board (CPPIB) have acquired an 80 percent interest in two Archstone apartment properties. The deal was done through a joint venture structure formed by the two with Archstone.

Joint Venture Formed to Recapitalize Two Archstone Apartment Properties

By Dees Stribling, Contributing Editor

Washington, D.C.–Allianz Real Estate and the Canada Pension Plan Investment Board (CPPIB) have acquired an 80 percent interest in two Archstone apartment properties. The deal was done through a joint venture structure formed by the two with Archstone.

Under the terms of the deal, Allianz and CPPIB have invested about $108 million each into the recapitalization of the two properties, Archstone North Point in Boston and Archstone Woodland Park in metro Washington, D.C. Archstone will retain a 20 percent stake in both, with CPPIB and Allianz owning the remaining 80 percent in equal proportion. Archstone and CPPIB have also formed a three-year development joint venture program.

Archstone stresses the quality of the relationship between the JV partners as essential to making the recapitalization a reality. “Allianz and CPPIB are both organizations with investment strategies that are consistent with ours, so we’re very pleased to establish a relationship with them,” Chaz Mueller, Archstone’s COO, tells MHN. “Our plan is to continue to grow the relationship over time, investing in additional apartment assets together.”

Archstone currently owns an interest in 428 apartments in the United States and Europe, representing about 79,890 units, including those under construction. Allianz Real Estate develops investment strategies on behalf of the Allianz Cos., including direct and indirect investments, while the CPPIB is an investment management organization that invests funds not needed to pay current benefits to about 17 million beneficiaries.

In a separate deal not involving the other partners, Archstone also recently finalized the acquisition of Villa Venetia, a 224-unit apartment complex in Marina del Rey, Calif., located on the southeast shore of the famed marina. According to Archstone, it acquired the property for $44.8 million. Over the next year the property will undergo a $25 million renovation and be renamed Archstone Breakwater at Marina del Rey.