AML Amli Resident Prp Tr

CHICAGO, Oct. 6 /PRNewswire-FirstCall/ -- AMLI Residential (NYSE:AML) announces today that it has entered into joint venture partnerships with a client of The Tuckerman Group LLC ("Tuckerman") by selling interests in two stabilized, previously wholly-owned apartment communities. In one transaction, AMLI sold a 60% partnership interest in AMLI at Riverbend (996 apartments in Indianapolis, Indiana) to Tuckerman. The newly formed partnership (in which AMLI retained a 40% interest) assumed the existing first mortgage loan that encumbered the property. The loan, which has an outstanding balance of approximately $44.3 million, has a remaining term of approximately nine years (eight at a fixed rate of interest of 4.85% and one additional year at a floating rate). Payments are based on a 30-year amortization schedule. In the other transaction, AMLI sold an 80% partnership interest in AMLI at Oakhurst North (464 apartments in Aurora, Illinois, a western suburb of Chicago) to Tuckerman. The newly formed partnership (in which AMLI retained a 20% interest) funded a new $41.8 million interest-only first mortgage loan simultaneous with the closing of the partnership. The loan has an eight-year term (seven at a fixed interest rate of 4.97% and one additional year at a floating rate). Both joint ventures are structured such that cash flow and sales proceeds will be shared in proportion to each partner's ownership interest until certain benchmarks are achieved, at which point AMLI will receive an increased portion of the cash flow and residual interest. In addition, AMLI earned debt placement and other upfront fees in connection with the closing of the transactions. "This is the first time AMLI has sold partnership interests in existing stabilized communities," said Allan J. Sweet, AMLI President. "These transactions allow us to maintain operating efficiencies and brand recognition in two of our midwest markets, while we seek to recycle capital into newer investments in those markets where we want to increase our presence. We are also pleased to add the Tuckerman Group to our roster of institutional partners." "On behalf of our client, we're pleased to forge this relationship with AMLI," said Glen Weisberg, managing director of The Tuckerman Group. "We value their reputation for creating value within the multifamily industry." This transaction continues AMLI's declared strategy to selectively co- invest with institutional investors for the development, acquisition and management of Class A multifamily apartment communities. By strategically leveraging the Company's equity through these alliances, AMLI believes the return on its investment will be significantly enhanced. The AMLI(R) portfolio currently includes 75 apartment communities containing 28,356 apartment homes, with an additional 827 apartment homes under development or in lease-up in three locations. AMLI is focused on the development, acquisition and management of institutional quality multifamily communities in the Southeast, Southwest, Midwest and Mountain regions of the U.S. AMLI Residential also serves as institutional advisor and asset manager for large pension funds, tax-exempt foundations and other financial institutions through AMLI's co-investment business. AMLI employs approximately 850 people who are dedicated to achieving AMLI's mission -- Provide An Outstanding Living Environment For Our Residents. More information on AMLI is available at http://www.amli.com/ . The Tuckerman Group is part of State Street Global Alliance, LLC, a jointly-owned subsidiary of State Street Global Advisors the investment management arm of State Street Corporation (NYSE:STT) and the Dutch pension fund ABP, one of the world's largest pension funds. The Tuckerman Group has two principal units: Tuckerman Investors, offering value-added investment programs to institutional investors on a co-investment basis, and Tuckerman Securities, managing funds which invest in real estate securities on both an active fundamental and passive basis. The Tuckerman Group currently manages over $4 billion in real estate assets. The Tuckerman Group has its headquarters in Rye Brook, New York with additional offices in Boston and Chicago. For more information visit http://www.thetuckermangroup.com/ . DATASOURCE: AMLI Residential CONTACT: Allan J. Sweet, President of AMLI Residential, +1-312-984-2602 Web site: http://www.amli.com/ http://www.thetuckermangroup.com/

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