~ Expands MetLife Relationship with San Francisco Development Agreement ~

DENVER--(BUSINESS WIRE)-- UDR, Inc. (the "Company") (NYSE: UDR), a leading multifamily real estate investment trust, today announced,

• the sale of a 49 percent interest in the Company’s fully-entitled 399 Fremont land parcel located in the Rincon Hill neighborhood of San Francisco to MetLife. In conjunction with the sale, the Company has formed a 51%/49% joint venture with MetLife to develop a $317 million, 447-home, luxury high-rise tower on the site,
• the Company’s impending exit of the Sacramento market through the sale of two communities for $81.1 million. In addition, the Company expects to sell its recently constructed community in Metro Boston, the Lodge at Stoughton, for $51.0 million prior to quarter-end, and
• the formation of a participating debt financing arrangement with a third party that is developing a $108 million, 218-home, mid-rise luxury community located adjacent to the Cherry Creek mall in Metro Denver. In addition to receiving interest income throughout the construction phase of the project, the Company received an option to purchase the property after completion and the Company will receive a participating interest in the upside upon the sale or purchase of the community.

The sales of the three communities are subject to standard closing conditions, are expected to be completed by December 17, 2013 and fulfill the Company’s disposition guidance for 2013. Nonrefundable earnest money deposits have been committed by the purchasers of the communities.

Expansion of MetLife Relationship

On December 5, 2013, the Company and MetLife announced that they have entered into a joint venture agreement to construct a luxury high-rise residential development in San Francisco. UDR will have a 51 percent ownership interest in the project, and MetLife will own 49 percent.

The development will comprise a 42-story tower and 100 percent of the homes will be market rate. With 447 residential units, the community will cost approximately $317 million to develop and be located at 399 Fremont Street in San Francisco’s Rincon Hill neighborhood, south of Market Street.

The high-rise tower will feature a best-in-market amenity package including a sky lounge and observation deck, pool, fitness center, pet care center and approximately 3,500 square feet of retail space. Home interiors, averaging 820 square feet, will include air-conditioning, hardwood flooring, washers and dryers, stainless steel appliances and luxury bathroom and kitchen finishes. Future residents will be within walking distance of a variety of nightlife destinations, high-end restaurants, the financial district and transportation hubs such as existing BART stations and the forthcoming Transbay Transit Center.

In conjunction with the 399 Fremont joint venture formation, the venture entered into a term sheet for a $174 million non-recourse construction loan with a rate of LIBOR plus a spread of 195 basis points which reduces to LIBOR plus a spread of 175 basis points upon completion of construction. The loan’s term is 48 months plus one 12-month extension. The project is expected to be completed in 2016 and will have a GMAX contract in place prior to commencing construction to mitigate construction cost risk.

Fourth Quarter 2013 Community Dispositions

The Company will exit the Sacramento market through the sale of two unencumbered communities for $81.1 million during the fourth quarter. In addition, the Company’s Lodge at Stoughton property, a recently developed 95%/5% joint venture community located in the greater Boston area, will be sold during the fourth quarter for $51.0 million. At its 95 percent ownership interest, the Company’s share will total approximately $49.0 million. The sales of the three communities are subject to standard closing conditions and are expected to be completed by December 17, 2013. Nonrefundable earnest money deposits have been committed by the purchasers of the communities. Additional details relating to the disposed of communities can be found in the table below.

In conjunction with the sale of the Lodge at Stoughton, the Company will provide the purchaser with a $40.8 million three-month bridge loan at LIBOR plus a spread of 350 basis points. The loan has two three-month extension options which increase the rate payable to LIBOR plus a spread of 375 basis points and LIBOR plus a spread of 400 basis points if exercised.

Participating Debt Financing Agreement

On October 31, 2013, the Company entered into a participating debt financing agreement with a third party that is developing a $108 million, 218-home, two-tower, mid-rise luxury community located in the desirable Cherry Creek neighborhood of Denver. Per the terms of the agreement, the Company will finance up to 85 percent of the development cost for which it will be paid an origination fee and interest of 6.5 percent per annum on any outstanding construction financing. In addition, the Company has an option to purchase the property after completion. The Company will also be paid a management fee during the lease-up and subsequent operation of the building and has a 50 percent participating interest in the upside upon the sale or purchase of the community. The project is expected to be completed in late 2015.

The mid-rise towers will incorporate a luxury amenity package including a roof-deck infinity pool and social area, a two-story fitness center and a sizeable lounge and clubhouse area. Interiors will include stainless steel appliances, floor-to-ceiling windows, balconies, washers and dryers and high-quality bathroom and kitchen finishes. The development will have nearly 17,000 square feet of ground floor retail space, is located across the street from the Cherry Creek Mall, an A+ mall primarily tenanted with high-end retailers and will have an average home size of approximately 950 square feet.

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 joint ventures with third parties, 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 press 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 September 30, 2013, UDR owned or had an ownership position in 53,656 apartment homes including 2,068 homes under development. For 41 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.

UDR, Inc.
Chris Van Ens
720-348-7762
cvanens@udr.com

Source: UDR, Inc.