WASHINGTON (dpa-AFX) - UDR, Inc. (UDR) announced the closing of a $230 million expansion of its joint venture with LaSalle Investment Management. The transaction increases the size of the joint venture to approximately $850 million.
As part of the expansion, UDR will contribute four additional apartment communities totaling 974 homes. These properties, located in Portland, Orlando, and Richmond, have an average vintage of 1985. With this addition, the joint venture now encompasses 2,564 apartment homes. UDR will retain 51% ownership in the newly contributed communities.
The contributed assets will be encumbered with 50% debt, and debt will also be placed on existing joint venture assets, resulting in total leverage of approximately 33% at the joint venture level. UDR expects to receive about $200 million in cash proceeds from the transaction.
The company plans to use the proceeds for share repurchases, debt repayment, and general corporate purposes. Looking ahead, UDR and LaSalle Investment Management intend to explore additional growth opportunities for the joint venture in 2026.
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