WASHINGTON (dpa-AFX) - UDR Inc. (UDR) announced that it has entered into a definitive agreement to acquire Dwell95, a 507-home apartment community in New York City's Financial District, for $325.0 million.
It is anticipated that the purchase price will be funded through the issuance of about $50 million of operating partnership units and $275 million in cash, partially funded through the proceeds from the disposition of communities that no longer fit the long term growth profile of the Company.
The community is currently 93% occupied and has an average income per occupied home of over $3,100 per month.
The company estimates the purchase price, excluding the 7,526 square feet of retail space and the 97-space parking garage, at $550,000 per apartment home.
The company noted that the building was redeveloped under the 421-g Program and will receive a tax abatement until 2023, as well as an exemption from real estate taxes until 2021, both of which include a four year phase out period. The company anticipates that the closing will occur on or before August 31, 2011.
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