DENVER--(BUSINESS WIRE)-- UDR, Inc. (the "Company") (NYSE: UDR), a leading multifamily real estate investment trust, today announced that its joint venture with Kuwait Finance House (“KFH”) has completed the $84 million acquisition of Twenty400, a 217-home luxury apartment community. The five-story property located in Arlington, Virginia was developed in 2010 and is currently in the final stages of lease up.

“We’re pleased to announce the acquisition of Twenty400 as it allows us to further enhance the quality of our portfolio in Washington, D.C. as well as provides us an enhanced return potential through fees and promotes earned through our joint venture with KFH,” said Tom Toomey, president and CEO of UDR.

The property is located along the I-395 corridor just south of the District of Columbia and two miles from the Pentagon, and less than a mile from the Company’s 241-home apartment community, Delancey at Shirlington Village. Community amenities include a central courtyard with open green space, resort style swimming pool and sundeck, a fully equipped fitness center, resident lounge, and controlled access to an on-site 329-space parking garage. Condominium-quality finishes include stainless steel appliances, granite countertops, modern custom cabinetry and full size washer/dryers in the community’s studio, one-, two- and three- bedroom apartment homes which average 986 square feet. The community is currently 91% occupied and has an average income per occupied home of $2,140.

The acquisition was funded through a new five-year $49.5 million interest-only loan at 3.39% from Fannie Mae, a 70% equity contribution by KFH of $24.15 million and a 30% equity contribution by the Company of $10.35 million.

Forward Looking Statements

Certain statements made in this press release may constitute “forward-looking statements.” Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement, due to a number of factors, which include, but are not limited to, unfavorable changes in the apartment market, changing economic conditions, the impact of inflation/deflation on rental rates and property operating expenses, expectations concerning availability of capital and the stabilization of the capital markets, the impact of competition and competitive pricing, acquisitions, developments and redevelopments not achieving anticipated results, delays in completing developments, redevelopments and lease-ups on schedule, expectations on job growth, home affordability and demand/supply ratio for multifamily housing, expectations concerning development and redevelopment activities, expectations on occupancy levels, expectations concerning the Vitruvian Park^SM development, expectations concerning the joint venture with MetLife, expectations that automation will help grow net operating income, expectations on annualized net operating income and other risk factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Actual results may differ materially from those described in the forward-looking statements. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required under the U.S. securities laws.

This release and these forward-looking statements include UDR’s analysis and conclusions and reflect UDR’s judgment as of the date of these materials. UDR assumes no obligation to revise or update to reflect future events or circumstances.

About UDR, Inc.

UDR, Inc. (NYSE:UDR), an S&P 400 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of June 30, 2011, UDR owned or had an ownership position in 60,456 apartment homes including 2,009 homes under development. For over 39 years, UDR has delivered long-term value to shareholders, the best standard of service to residents, and the highest quality experience for associates. Additional information can be found on the Company's website at www.udr.com.

Source: UDR, Inc.

UDR, Inc.

H. Andrew Cantor, 720-283-6083

acantor@udr.com