EX-99.1
4
d27495exv99w1.htm
PRESS RELEASE
exv99w1
Exhibit 99.1
News Release
Contact:
H. Andrew Cantor
800-982-9293 · 303-708-5959
Archstone-Smith Completes $1.1 Billion Acquisition of 25
Communities from Oakwood Worldwide
Strategic Transaction Significantly Strengthens Company's Presence in
Highly Desirable Neighborhoods in its Core Markets
DENVER - August 1, 2005 - Archstone-Smith (NYSE:ASN) announced that it has closed the first
round of apartment community acquisitions from Oakwood Worldwide, the leading global provider of
corporate housing, comprising 25 communities, 8,228 units, and a total expected investment of $1.1
billion. In total, Archstone-Smith expects to acquire 36 communities from Oakwood; with the
remaining communities, representing 4,548 units and a total expected investment of $412.0 million,
anticipated to close later this year or during 2006.
"This exceptionally well located portfolio - which enhances our presence in many of our
best-performing markets - epitomizes our commitment to improve our portfolio with every investment
we make", said R. Scot Sellers, chairman and chief executive officer. "Ownership of high-quality
assets in superior locations, combined with an outstanding operating platform is the cornerstone of
our strategy. We are confident this transaction will create tremendous value for our shareholders,
our associates and the residents we serve".
Over 81% of the acquired communities are concentrated in Archstone-Smith's core markets, including
48% in Southern California and 15% in the San Francisco Bay area. The closing of the portfolio
increases Archstone-Smith's presence in Southern California from 21% to approximately 26% of its
national portfolio, giving the company a dominant presence in key submarkets including Marina del
Rey, Universal/Studio City, Warner Center, Pasadena and La Jolla - all locations characterized with
very expensive home prices and little available land upon which to build additional housing.
The attached portfolio summary provides an overview of Oakwood communities Archstone-Smith closed.
Under the terms of the agreement, Archstone-Smith will directly manage 13 of the 25 communities
under the Archstone brand name. The remaining communities are subject to a master lease agreement
through which Oakwood will lease back and manage for a period of no more than seven years.
Archstone-Smith will receive a specified contractual base rent payment from Oakwood, which will
then be adjusted annually by the percentage change in the average same-store net operating income
growth rate for comparable assets owned by Archstone-Smith in the same submarket.
Archstone-Smith funded this tranche of the acquisition with a combination of operating partnership
units, assumed mortgage debt and cash. Operating partnership units represented $319 million, or 8.9
million units, of the total. In addition, Archstone-Smith assumed $372 million of mortgage debt,
which has an all-in rate of approximately 5.1%. The cash component of the transaction was $438
million, with $195 million used to pay off of existing Oakwood mortgage debt.
-more-
Archstone-Smith Completes $1.1 Billion Acquisition of 25 Communities from Oakwood Worldwide
Page 2
Archstone-Smith (NYSE: ASN) is a recognized leader in apartment investment and operations. With a
current total market capitalization of $15.0 billion, Archstone-Smith owns and operates an
irreplaceable portfolio of high-rise and garden apartment communities concentrated in many of the
most desirable neighborhoods in the Washington, D.C. metropolitan area, Southern California, the
San Francisco Bay area, the New York City metropolitan area, Boston, Southeast Florida, Chicago and
Seattle. The company continually upgrades the quality of its portfolio through the selective sale
of assets, using proceeds to fund investments with even better growth prospects. Through its two
brands, Archstone and Charles E. Smith, Archstone-Smith strives to provide great apartments and
great service to its customers - backed by unconditional service guarantees. As of July 28, 2005,
Archstone-Smith owned or had an ownership position in 252 communities, representing 86,489 units,
including units under construction.
Archstone-Smith, an S&P 500 company, was recognized as one of America's Most Admired Companies for
2004 by Fortune Magazine and ranks 991 on the Forbes 2000 List, the magazine's comprehensive
ranking of the world's largest companies, for 2005. In addition, the company was recognized as
Company of the Year by Colorado Biz Magazine. To find out more, visit ArchstoneSmith.com.
# # #
Archstone-Smith's archived press releases are available on its web site at
www.ArchstoneSmith.com
or may be obtained by calling (800) 982-9293.
In addition to historical information, this press release contains forward-looking statements
and information under the federal securities law. These statements are based on current
expectations, estimates and projections about the industry and markets in which Archstone-Smith
operates, management's beliefs and assumptions made by management. While Archstone-Smith management
believes the assumptions underlying its forward-looking statements and information are reasonable,
such information is necessarily subject to uncertainties and may involve certain risks, many of
which are difficult to predict and are beyond management's control. As such, these statements and
information are not guarantees of future performance, and actual operating results may differ
materially from what is expressed or forecasted in this press release and supplemental information.
See "Risk Factors" in Archstone-Smith's 2004 Annual Report on Form 10-K for factors which could
affect Archstone-Smith's future financial performance.
Archstone-Smith Oakwood Portfolio Acquisition
Community Closings on July 29, 2005
CORE MARKETS
High-rise/
Number of
Community name
Location/Market
Garden
Units
SOUTHERN CALIFORNIA
Archstone La Jolla Colony
La Jolla, Calif.
Garden
180
Archstone Old Town Pasadena
Pasadena, Calif.
Garden
96
Archstone Thousand Oaks
Thousand Oaks, Calif.
Garden
154
Oakwood Long Beach Marina*
Seal Beach, Calif.
Garden
549
Oakwood Marina del Rey*
Marina del Rey, Calif.
Garden
597
Oakwood Toluca Hills*
Los Angeles
Garden
1,151
Oakwood Woodland Hills East*
Woodland Hills, Calif.
Garden
883
WASHINGTON, D.C. METROPOLITAN AREA
Oakwood Arlington*
Arlington, Va.
High-rise
184
SAN FRANCISCO BAY AREA
Oakwood San Francisco*
San Francisco
Garden
15
Oakwood San Jose South*
San Jose, Calif.
Garden
789
Oakwood Mountain View*
Mountain View, Calif.
Garden
402
Archstone Walnut Creek Ridge
Walnut Creek, Calif.
Garden
106
BOSTON, CHICAGO AND SEATTLE
Oakwood Boston*
Boston
High-rise
94
Oakwood Chicago*
Chicago
High-rise
304
Oakwood Seattle*
Seattle
High-rise
147
Archstone Lake Sammamish
Redmond, Wash.
Garden
166
Oakwood Bellevue*
Bellevue, Wash.
Garden
191
TOTAL CORE MARKET UNITS:
6,008
NON-CORE MARKETS
High-rise/
Number of
Community name
Location/Market
Garden
Units
Southfield Apartments
Southfield, Mich.
Garden
396
Archstone Midtown
Houston
Garden
243
Archstone Las Colinas
Irving, Texas
Garden
514
Archstone North Dallas
Dallas
Garden
228
LaSalle Apartments
Minneapolis
High-rise
121
Symphony Place
Minneapolis
High-rise
250
Regency Club
Baton Rouge, La.
Garden
312
Archstone City Heights
Portland, Ore.
High-rise
156
TOTAL NON-CORE MARKET UNITS:
2,220
TOTAL UNITS:
8,228
*
Represents communities subject to master lease agreements with Oakwood.

EX - 99 . 1 4 d27495exv99w1 . htm PRESS RELEASE exv99w1 Exhibit 99 . 1 News Release Contact : H . Andrew Cantor 800 - 982 - 9293 · 303 - 708 - 5959 Archstone - Smith Completes $ 1.1 Billion Acquisition of 25 Communities from Oakwood Worldwide Strategic Transaction Significantly Strengthens Company 's Presence in Highly Desirable Neighborhoods in its Core Markets DENVER - August 1 , 2005 - Archstone - Smith ( NYSE : ASN ) announced that it has closed the first round of apartment community acquisitions from Oakwood Worldwide , the leading global provider of corporate housing , comprising 25 communities , 8,228 units , and a total expected investment of $ 1.1 billion . In total , Archstone - Smith expects to acquire 36 communities from Oakwood ; with the remaining communities , representing 4,548 units and a total expected investment of $ 412.0 million , anticipated to close later this year or during 2006 . " This exceptionally well located portfolio - which enhances our presence in many of our best - performing markets - epitomizes our commitment to improve our portfolio with every investment we make " , said R . Scot Sellers , chairman and chief executive officer . " Ownership of high - quality assets in superior locations , combined with an outstanding operating platform is the cornerstone of our strategy . We are confident this transaction will create tremendous value for our shareholders , our associates and the residents we serve " . Over 81 % of the acquired communities are concentrated in Archstone - Smith ' s core markets , including 48 % in Southern California and 15 % in the San Francisco Bay area . The closing of the portfolio increases Archstone - Smith ' s presence in Southern California from 21 % to approximately 26 % of its national portfolio , giving the company a dominant presence in key submarkets including Marina del Rey , Universal / Studio City , Warner Center , Pasadena and La Jolla - all locations characterized with very expensive home prices and little available land upon which to build additional housing . The attached portfolio summary provides an overview of Oakwood communities Archstone - Smith closed . Under the terms of the agreement , Archstone - Smith will directly manage 13 of the 25 communities under the Archstone brand name . The remaining communities are subject to a master lease agreement through which Oakwood will lease back and manage for a period of no more than seven years . Archstone - Smith will receive a specified contractual base rent payment from Oakwood , which will then be adjusted annually by the percentage change in the average same - store net operating income growth rate for comparable assets owned by Archstone - Smith in the same submarket . Archstone - Smith funded this tranche of the acquisition with a combination of operating partnership units , assumed mortgage debt and cash . Operating partnership units represented $ 319 million , or 8 . 9 million units , of the total . In addition , Archstone - Smith assumed $ 372 million of mortgage debt , which has an all - in rate of approximately 5 . 1 % . The cash component of the transaction was $ 438 million , with $ 195 million used to pay off of existing Oakwood mortgage debt . - more - Archstone - Smith Completes $ 1.1 Billion Acquisition of 25 Communities from Oakwood Worldwide Page 2 Archstone - Smith ( NYSE : ASN ) is a recognized leader in apartment investment and operations . With a current total market capitalization of $ 15.0 billion , Archstone - Smith owns and operates an irreplaceable portfolio of high - rise and garden apartment communities concentrated in many of the most desirable neighborhoods in the Washington , D . C . metropolitan area , Southern California , the San Francisco Bay area , the New York City metropolitan area , Boston , Southeast Florida , Chicago and Seattle . The company continually upgrades the quality of its portfolio through the selective sale of assets , using proceeds to fund investments with even better growth prospects . Through its two brands , Archstone and Charles E . Smith , Archstone - Smith strives to provide great apartments and great service to its customers - backed by unconditional service guarantees . As of July 28 , 2005 , Archstone - Smith owned or had an ownership position in 252 communities , representing 86,489 units , including units under construction . Archstone - Smith , an S & P 500 company , was recognized as one of America 's Most Admired Companies for 2004 by Fortune Magazine and ranks 991 on the Forbes 2000 List , the magazine ' s comprehensive ranking of the world 's largest companies , for 2005 . In addition , the company was recognized as Company of the Year by Colorado Biz Magazine . To find out more , visit ArchstoneSmith.com . # # # Archstone - Smith ' s archived press releases are available on its web site at www.ArchstoneSmith.com or may be obtained by calling ( 800 ) 982 - 9293 . In addition to historical information , this press release contains forward - looking statements and information under the federal securities law . These statements are based on current expectations , estimates and projections about the industry and markets in which Archstone - Smith operates , management 's beliefs and assumptions made by management . While Archstone - Smith management believes the assumptions underlying its forward - looking statements and information are reasonable , such information is necessarily subject to uncertainties and may involve certain risks , many of which are difficult to predict and are beyond management 's control . As such , these statements and information are not guarantees of future performance , and actual operating results may differ materially from what is expressed or forecasted in this press release and supplemental information . See " Risk Factors " in Archstone - Smith ' s 2004 Annual Report on Form 10 - K for factors which could affect Archstone - Smith ' s future financial performance . Archstone - Smith Oakwood Portfolio Acquisition Community Closings on July 29 , 2005 CORE MARKETS High - rise / Number of Community name Location / Market Garden Units SOUTHERN CALIFORNIA Archstone La Jolla Colony La Jolla , Calif . Garden 180 Archstone Old Town Pasadena Pasadena , Calif . Garden 96 Archstone Thousand Oaks Thousand Oaks , Calif . Garden 154 Oakwood Long Beach Marina * Seal Beach , Calif . Garden 549 Oakwood Marina del Rey * Marina del Rey , Calif . Garden 597 Oakwood Toluca Hills * Los Angeles Garden 1,151 Oakwood Woodland Hills East * Woodland Hills , Calif . Garden 883 WASHINGTON , D . C . METROPOLITAN AREA Oakwood Arlington * Arlington , Va . High - rise 184 SAN FRANCISCO BAY AREA Oakwood San Francisco * San Francisco Garden 15 Oakwood San Jose South * San Jose , Calif . Garden 789 Oakwood Mountain View * Mountain View , Calif . Garden 402 Archstone Walnut Creek Ridge Walnut Creek , Calif . Garden 106 BOSTON , CHICAGO AND SEATTLE Oakwood Boston * Boston High - rise 94 Oakwood Chicago * Chicago High - rise 304 Oakwood Seattle * Seattle High - rise 147 Archstone Lake Sammamish Redmond , Wash . Garden 166 Oakwood Bellevue * Bellevue , Wash . Garden 191 TOTAL CORE MARKET UNITS : 6,008 NON - CORE MARKETS High - rise / Number of Community name Location / Market Garden Units Southfield Apartments Southfield , Mich . Garden 396 Archstone Midtown Houston Garden 243 Archstone Las Colinas Irving , Texas Garden 514 Archstone North Dallas Dallas Garden 228 LaSalle Apartments Minneapolis High - rise 121 Symphony Place Minneapolis High - rise 250 Regency Club Baton Rouge , La . Garden 312 Archstone City Heights Portland , Ore . High - rise 156 TOTAL NON - CORE MARKET UNITS : 2,220 TOTAL UNITS : 8,228 * Represents communities subject to master lease agreements with Oakwood .