The Irvine Company is set to buy 16 apartment complexes in Orange County and San Diego County as part of an estimated $1.4 billion deal.
The Newport Beach-based real estate investor and developer is buying area apartment complexes now run by Englewood, Colo.-based Archstone-Smith Trust, the company confirmed on Wednesday.
Archstone-Smith is one of the country’s largest apartment owners.
The deal stems from the $15.2 billion buyout of Archstone announced in August by Tishman Speyer Properties and Lehman Brothers Holdings Inc.
The Irvine Co. is buying a 90% stake in a portion of Archstone’s Southern California apartment portfolio for $1.4 billion, according to the Wall Street Journal. The deal is scheduled to close later this week.
Tishman and Lehman will reportedly hold the other 10%.
Regulatory filings put Archstone’s OC and San Diego portfolio at close to 6,000 apartments, not including an 884-unit apartment complex being built in Anaheim’s Platinum Triangle.
Irvine Co. officials confirmed on Wednesday that a deal was in place.
“Archstone-Smith is a high quality multi-family REIT, and we believe the product in which we are investing is on par with ours. It will complement our holdings in Orange and San Diego counties,” said Tony Russo, the company’s senior vice president of corporate affairs, in a statement.
