US residential real estate investment trust Equity Residential has partnered with AvalonBay Communities to acquire a portfolio of US apartment properties owned by Archstone.
Equity Residential and AvalonBay are acquiring the portfolio from the Lehman Brothers estate for approximately $16bn.
Equity Residential’s stake, around 60 per centof the Archstone portfolio, includes 78 properties in US markets, including Washington, D.C. San Francisco, Los Angeles, New York, Boston, Seattle, and South Florida.
The total number of apartments going to Equity Residential is more than 23,000 units.
The company will additionally acquire properties under development in Washington DC, San Francisco, Phoenix and South Florida.
The deal marks the largest real estate transaction since Blackstone Group’s $26bn acquisition of Hilton Worldwide in 2007.
Last year Blackstone was reported to be preparing the hotel chain for an IPO. Earlier this year the firm sold a portfolio of four hotels to real estate investment trust DiamondRock Hospitality for approximately $495m.
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