Dealmaker: UDR, MetLife Investment Management Close $1.8B JV

Multifamily real estate investment trust UDR Inc. closed a $1.76 billion transaction with MetLife Investment Management, New York.

The transaction shrank the UDR/MetLife Investment Management joint venture significantly. UDR acquired the 50 percent interest not previously owned in 10 joint venture apartment communities totaling 3,321 units, one community under development and four development land sites valued at $1.1 billion; MetLife Investment Management acquired 50 percent ownership interest in five joint venture communities totaling 1,001 units valued at $645 million.

UDR outlaid $109 million net cash to complete the swap after assuming $540 million of in-place debt.

“The acquired communities are located in markets targeted for expansion, are accretive to our 2020 earnings, have operational upside and enhance the diversification of our portfolio,” said UDR Chairman and CEO Tom Toomey.  

MetLife Investment Management Global Head of Real Estate Robert Merck said the five properties MetLife Investment Management acquired through the transaction are in the Seattle, Denver, Austin, Los Angeles and San Diego markets.

Toomey noted UDR will continue to partner with MetLife Investment Management to operate 13 multifamily properties that remain in the joint venture.