AvalonBay, Equity Residential Agree To Divest Boston Towers
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Massachusetts Attorney General Andrea Campbell reached a settlement with the country's largest publicly traded apartment landlord, forcing it to sell two downtown Boston towers following a megamerger. Vivmark Residential, the new REIT formed by the merger of AvalonBay Communities and Equity Residential that closed this week, agreed to sell the apartment towers at 1 and 10 Emerson Place as part of a settlement intended to preserve competition in the market, Campbell's office announced Tuesday . "When real estate companies consolidate market share, it can lead to higher prices, lower quality amenities, and worse lease terms for renters. This agreement protects Boston renters and ensures this merger doesn't create unlawful market control," Campbell said in a statement. The REIT plans to divest the two buildings, which total 444 residential units, and find an "unrelated buyer" for the properties. AvalonBay and Equity Residential agreed to prohibit the "sharing of competitively sensitive information or coordination of pricing and leasing terms" as part of the sale. The REITs also agreed to uphold their affordability commitments with a $500K contribution to the city of Quincy's Affordable Housing Trust. Vivmark owns and operates six apartment buildings in the city south of Boston. The settlement comes after the Attorney General's Office investigated the merger and "identified...
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