UDR Announces Manhattan Apartment Acquisition, Morgan Keegan Maintains Outperform

Morgan Keegan has published a research report on UDR, Inc. UDR after the company announced its agreement to expand into the Manhattan apartment market. In the report, Morgan Keegan writes "Today, UDR announced a definitive agreement to acquire 10 Hanover Square, a 23-story building in NYC containing 493 apartment homes and 41.7k SF of retail space. The $260.8 million purchase price includes $238.6 million for the apartments ($484k per unit) and $22.2 million for the retail space ($533 per SF). The purchase will be funded through assumption of a $192.0 million mortgage (5.93% fixed), issuance of $64.3 million of operating partnership units (floor price $25 per unit, for an implied cap. rate approximating 5%), and $4.5 million in cash. Closing is expected once the mortgage loan has been assumed." Morgan Keegan maintains its Outperform rating and $27.50 price target. UDR, Inc. closed yesterday at $23.68.