Equity Residential Agrees to Sell $1.5 Billion of Assets to a Joint Venture of Goldman Sachs and Greystar

  Equity Residential Agrees to Sell $1.5 Billion of Assets to a Joint Venture
  of Goldman Sachs and Greystar

Business Wire

CHICAGO -- January 7, 2013

Equity Residential (NYSE: EQR) today announced that the company has entered
into an agreement to sell a portfolio of assets to a joint venture of the Real
Estate Principal Investment Area of Goldman, Sachs & Co. and Greystar Real
Estate Partners LLC for $1.5 billion. The transaction values the 27 properties
at approximately $187,000 per apartment unit and a capitalization rate in the
mid to high 5% range.  Per the agreement, Equity Residential has granted the
buyer the right to exclude up to 8% of the value of these assets from their
purchase. As a result, Goldman Sachs and Greystar have the contractual right
to acquire all of the assets for $1.5 billion but are obligated to purchase
not less than $1.38 billion of assets. The buyers have deposited $150 million
in escrow and have waived their due diligence contingency. The transaction is
expected to be completed in two separate closings, both of which will occur in
the first quarter of 2013.

"With this transaction we will have made significant progress selling assets
in our exit markets and non-core assets in primary markets to fund our share
ofthe acquisition of Archstone," said David J. Neithercut, Equity
Residential’s President and CEO. "Demand for multifamily assets remains very
strong and we are pleasedthat our original pricing expectations were met by
this transaction."

The assets under contract for sale are located in the following markets:

Market                               Units   Purchase Price (millions)
Washington, D.C. and Northern N.J.     2,105     $517.7
Florida                                1,896     $276.7
Phoenix                                1,575     $180.3
Denver                                 1,003     $156.0
Southern California                    720       $180.8
San Francisco Bay Area                 711       $188.5
Total                                  8,010     $1,500

Equity Residential is an S&P 500 company focused on the acquisition,
development and management of high quality apartment properties in top U.S.
growth markets. Equity Residential owns or has investments in 412 properties
located in 13 states and the District of Columbia, consisting of 117,322
apartment units. For more information on Equity Residential, please visit our
website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains
forward-looking statements and information within the meaning of the federal
securities laws. These statements are based on current expectations,
estimates, projections and assumptions made by management. While Equity
Residential’s management believes the assumptions underlying its
forward-looking statements are reasonable, such information is inherently
subject to uncertainties and may involve certain risks, including, without
limitation, changes in general market conditions, including the rate of job
growth and cost of labor and construction material, the level of new
multifamily construction and development, competition and local government
regulation. Other risks and uncertainties are described under the heading
“Risk Factors” in our Annual Report on Form 10-K and subsequent periodic
reports filed with the Securities and Exchange Commission (SEC) and available
on our website, www.equityapartments.com. Many of these uncertainties and
risks are difficult to predict and beyond management’s control.
Forward-looking statements are not guarantees of future performance, results
or events. Equity Residential assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent events.

Contact:

Equity Residential
Marty McKenna, 312-928-1901
 
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