Manhattan Portfolio will Represent $1.2 billion and 1,916 Homes

DENVER--(BUSINESS WIRE)-- UDR, Inc. (the "Company") (NYSE: UDR), a leading multifamily real estate investment trust, today announced that it has entered into a definitive agreement to acquire Dwell95, a 507-home apartment community in New York City’s Financial District, for $325.0 million. It is anticipated that the purchase price will be funded through the issuance of approximately $50 million of operating partnership units (with a floor price of $25 per unit) and $275 million in cash, partially funded through the proceeds from the disposition of communities that no longer fit the long term growth profile of the Company.

Tom Toomey, president and CEO of UDR, commented: “We see significant value creation opportunities through the implementation of our operating platform as the building is still pre-stabilized following the complete renovation in 2008. Dwell95 provides a unique opportunity to further our presence in the Financial District, an area of Manhattan that we believe will continue to benefit from the redevelopment of the World Trade Center and surrounding areas.”

Located on Wall Street between Water and Front Streets, and one block east of the Company’s 493-home community, 10 Hanover Square, the 22-story building was formerly the corporate headquarters of J.P. Morgan prior to being converted to residential in 2008. The building features condo-quality interior finishes for its studio, one- and two- bedroom apartment homes which average 668 square feet. The finishes include wood flooring, custom cabinetry, marble countertops and backsplashes, high-end appliances and stackable washer/dryer units. Residents enjoy a 24-hour doorman and concierge service, fitness center, resident lounge, rooftop deck and on-site parking.

The community is currently 93% occupied and has an average income per occupied home of over $3,100 per month. The Company estimates the purchase price, excluding the 7,526 square feet of retail space and the 97-space parking garage, at $550,000 per apartment home.

The building was redeveloped under the 421-g Program and will receive a tax abatement until 2023, as well as an exemption from real estate taxes until 2021, both of which include a four year phase out period.

The Company anticipates that the closing will occur on or before August 31, 2011.

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 ParkSM 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 60,386 apartment homes including 1,939 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