Grove Property Trust: This real estate investment trust is based in Connecticut, it was a company that owned and managed apartments, it was a registered REIT meaning that it was taxed as a REIT and the profit was equally divided amongst the shareholders rather than paid to income tax.
Grove Property Trust owned 60 properties and 7,296 units in and around the Boston area as of 2000, it also owned 4 retail shopping centers and open air retail stores, the company was then valued at $461 million dollars, making it a large REIT but not the largest or the most profitable.
In 2000 Grove Property Trust merged with Equity Residential Trust, when the company sold its shares for $17 cash or for $3.5 million dollars, total buyout of the company ended up costing over $21 million dollars, Equity Residential Trust also acquired all of Grove Property Trust’s debt.
Grove Property Trust was happy to have its properties acquired by Equity Residential Trust one of the largest REITs in the apartment business, this merger was profitable for every side, Since at that time Equity Residential Trust owned only 19 properties and 5,020 units, and after it merged with Grove Property Trust it then owned 79, more than doubling the net worth of this REIT, it now has over 223,304 units and 1,049 properties making it the largest apartment building owner in the REIT business.
Grove Property Trust was then fully owned by Equity Residential Trust and the company was then dissolved. At the current time Equity Residential Trust is traded on the New York Stock Exchange as EQR where it is currently traded (Jan 2011) and $51 per common share, and employs over 4000 people and houses over 200,000 people at this time and has property in 18 states.
Equity Residential Trust will acquire any apartment property that is in a metropolitan area that has over 200 units in the building, properties that are newer than 1990 are the kinds of properties that they are looking for, although a building with historic meaning or unique designs are also always considered. They will acquire major portfolios such as Grove Property Trust as well as single building transactions; they will also provide quick closings and financial help to acquisitions.
Equity Residential Trust is now known in the real estate market as a very large and very powerful player. Buying a large amount of properties in a short amount of time, due to the fact that the company is so large it is able to acquire properties that other REITs do not have the funds to buy, giving it a market share of over $14,507.51 million dollars.
|Tags: Apartment, area, Boston, building, company, Connecticut, Equity, estate, Grove Property, REIT, Residential, time, Trust|
|Posted in Investing, Real Estate, Strategies|