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Equity Residential

Equity Residential is a publicly traded real estate investment trust that invests in apartments.

Equity Residential
TypePublic company
Traded asNYSE: EQR
S&P 500 Index component
ISINUS29476L1070 Edit this on Wikidata
IndustryApartments
Founded1969; 51 years ago
FounderSam Zell
HeadquartersRiverside Plaza
Chicago, Illinois
Key peopleMark J. Parrell, CEO
Sam Zell, Chairman
Robert A. Garechana, CFO
ServicesProperty Management
RevenueIncrease $2.701 billion (2019)
Net incomeIncrease $1.009 billion (2019)
Total assetsIncrease $21.172 billion (2019)
Total equityIncrease $10.544 billion (2019)
Number of employees2,700 (2018)
Websitewww.equityapartments.com
Footnotes / references
[1]

As of December 31, 2019, the company owned or had investments in 309 properties consisting of 79,962 apartment units in Southern California, San Francisco, Washington, D.C., New York City, Boston, Seattle, and Denver.[1]

It is the 2nd largest owner of apartments in the United States[2] and the 10th largest apartment property manager in the United States.[3]

History

The company had its origins in Equity Finance and Management Company, founded in 1969 by real-estate investor Sam Zell.[4]

In 1993, the company acquired a large portfolio of properties from Barry Sternlicht in exchange for a 20% stake in the company. Sternlicht had acquired the properties via government auctions after the savings and loan crisis.[5]

On August 11, 1993, the company became a public company via an initial public offering.[6] At that time, the company owned 22,000 apartments.[7]

In 1997, the company acquired Wellsford Residential Property Trust for $620 million in stock and the assumption of $346 million of debt[8][9] and acquired Evans Withycombe Residential for $625 million in stock and the assumption of $432 million in debt.[10]

In 1998, the company acquired a portfolio of 5,774 apartments from Lincoln Property Company for $465 million[11] and acquired Merry Land, which owned 34,990 units in the southeast United States, for $1.17 billion in stock as well as $656 million in debt and $270 million in preferred stock.[12][13]

In 1999, the company acquired Lexford Residential Trust for $203 million in stock and the assumption of $530 million of debt. Lexford owned mainly one-story affordable housing units, rented to households with incomes between $25,000 and $35,000.[14]

In 2001, the company was added to the S&P 500 Index.[15]

In January 2003, CEO Douglas Crocker retired. During his tenure, the company increased its ownership from 22,000 apartments to 227,000 apartments.[7]

In 2006, the company sold its Lexford affordable housing division, which included 27,115 apartment units, for $1.09 billion.[16][17]

On February 27, 2013, Equity Residential and AvalonBay Communities closed a $9 billion deal to acquire Archstone from Lehman Brothers.[18]

In 2013, the company sold 8,010 apartment units to a joint venture of Goldman Sachs and Greystar Real Estate Partners for $1.5 billion.[19]

In 2016, the company sold 23,262 apartments to Starwood Capital Group for $5.365 billion.[20]

Equity Residential was sued in a class action in 2017 due to allegations that it charged late payment fees in violation of California law.[21][22] Washington, D.C. attorney general Karl Racine also filed a suit against the company in December 2017, challenging the rent concessions offered by Equity Residential for the purpose of attracting new tenants.[23]

References

  1. ^ a b "Equity Residential 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "NMHC 50 Largest Apartment Owners". National Multifamily Housing Council.
  3. ^ "NMHC 50 Largest Apartment Managers". National Multifamily Housing Council.
  4. ^ "Our Story".
  5. ^ Goldfarb, Jeffrey (October 26, 2015). "Keep one eye on Sam Zell's "For Sale" sign". Reuters.
  6. ^ "SCHEDULE 14A". U.S. Securities and Exchange Commission.
  7. ^ a b Gallun, Alby (June 7, 2007). "Veteran apartment buyer Crocker now in residence at Transwestern". Crain Communications.
  8. ^ "Apartment Deal For Zell's REIT". The New York Times. Bloomberg News. January 18, 1997.
  9. ^ Allen, J. Linn (January 18, 1997). "Zell-backed Trust To Buy Wellsford". Chicago Tribune.
  10. ^ "EQUITY RESIDENTIAL TO PAY $625 MILLION FOR RIVAL". The New York Times. Dow Jones & Company. August 29, 1997.
  11. ^ "EQUITY RESIDENTIAL IN DEAL WITH LINCOLN PROPERTY". The New York Times. Dow Jones & Company. May 30, 1998.
  12. ^ Holson, Laura M. (July 9, 1998). "Equity Residential to Acquire Merry Land for Stock and Debt". The New York Times.
  13. ^ "Zell REIT Announces Agreement To Buy Merry Land & Investment". The Wall Street Journal. July 8, 1998.
  14. ^ "EQUITY RESIDENTIAL IN $203 MILLION DEAL FOR LEXFORD". The New York Times. Bloomberg News. July 2, 1999.
  15. ^ "Change in S.& P. 500". Bloomberg News. The New York Times. November 28, 2001.
  16. ^ "Equity Residential Announces Sale of Its Lexford Housing Division for $1.1 Billion" (Press release). Business Wire. June 28, 2006.
  17. ^ Ball, Brian R. (July 10, 2006). "Equity Residential selling Lexford for $1.09 billion". American City Business Journals.
  18. ^ "Equity Residential Announces Closing of $9 Billion Archstone Acquisition" (Press release). Business Wire. February 27, 2013.
  19. ^ "Equity Residential Agrees to Sell $1.5 Billion of Assets to a Joint Venture of Goldman Sachs and Greystar" (Press release). Business Wire. January 7, 2013.
  20. ^ "Equity Residential Announces Closing of Sale of 23,262 Apartment Units to Starwood Capital Group for $5.365 Billion" (Press release). Business Wire. January 27, 2016.
  21. ^ "Class-action lawsuit against Equity Residential to proceed in California". Real Estate Weekly. December 12, 2017.
  22. ^ "Calif. Tenants Get Class Cert. In Late Fees Suit". Law360. October 24, 2017.
  23. ^ "D.C. Sues Landlord of Rent-Controlled Building in Northwest for Offering Problematic Discounts". Washington City Paper. December 15, 2017.

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