The largest acquisition in the history of the multifamily REIT market certainly had its share of challenges. A partnership of Tishman Speyer Properties and Lehman Brothers Holdings paid $22.2 billion for Archstone’s portfolio of 359 communities (more than 87,600 units). The purchase was announced in late May 2007, and the deal was initially to be funded through conduit executions. But when the CMBS market tanked soon thereafter, the buyers had to scramble to put together financing. At the time, many industry watchers wondered if the deal would even close. Enter Fannie Mae and Freddie Mac. Fannie purchased a $7.1 billion credit facility, the company’s largest credit facility to date. Freddie Mac bought two pools of loans totaling $1.8 billion, the largest pools it, too, has done to date. Meanwhile, The Irvine Co. bought a 90 percent interest in 15 of the communities, which brought in another estimated $1.4 billion, and the company also made an undisclosed equity investment. The buyers provided another $500 million in equity to close the deal.
The Top 10 Multifamily Deals of the Decade
The Top 10 Multifamily Deals of the Decade
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1. Tishman Speyer, Lehman Bros. Acquire Archstone-Smith for $22.2 Billion (2007)