UDR Inc., of Highlands Ranch, plans to acquire its first multifamily property in Manhattan after agreeing to pay $260.8 million for 10 Hanover Square, a 493-unit building in the Financial District.
UDR, the nation’s third-largest publicly traded apartment owner, said in a statement that “the expansion of our portfolio into Manhattan reflects our desire to own and operate apartment homes in markets that have the best growth prospects based on favorable job formation and low home affordability.”
The purchase will be funded through the assumption of an existing $192 million fixed-rate mortgage, and $4.5 million in cash, according to the statement.
UDR will also issue the seller, New York’s Witkoff Group, $64.3 million of “operating partnership units,” or equity.
UDR estimates the purchase price, excluding retail, at $484,000 per apartment.
The deal will close once UDR assumes the $192 million mortgage, according to the statement. The fixed-rate mortgage requires interest-only payment through December 2012 and matures in December 2015.
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