Equity Residential and Toll Bros., through its Toll Brothers Apartment Living division, have established a strategic partnership to develop new rental apartment communities in key U.S. markets.
Through the partnership, the parties initially intend to focus on selectively acquiring and developing sites for apartment rental communities in six metro markets where both parties have a significant or growing presence — Atlanta, Austin, Boston, Denver, Seattle, and Southern California in Orange County and San Diego — as well as in Dallas–Fort Worth, a market Equity Residential has recently re-entered.
During the next three years, Equity Residential will invest 75 percent of the equity for each selected project, and Toll Bros. will invest 25 percent. Also, each project is expected be financed with approximately 60 percent leverage. Equity Residential will have the option to acquire each property upon stabilization. The parties have targeted an initial minimum co-investme