Equity Real Estate, LLC history

REITs originally were created by Congress in 1960 as a way for small investors to become involved in real estate in much the same way a mutual fund allowed them to pool resources to buy stocks.

Zell and Lurie formed Equity Finance and Management Company in 1968.

They concentrated on buying apartment buildings in fast-growing cities, primarily located in Sunbelt states. It was also a time of many dubious real estate tax shelter schemes, and in 1976 Zell became caught up in a federal investigation that nearly devastated the partnership.

Zell and Lurie gained national attention in 1981 when they acquired a controlling 68 percent stake in Great American Management & Investment Inc., an Atlanta-based REIT with some $500 million in assets.

Equity started in Columbus, Ohio in 1987 with one office, but founder and visionary Steve Wathen viewed Equity as a national commercial real estate firm from day one.

The Formation of Equity Residential As a REIT in 1993

Early in 1997 Zell's REIT acquired New York-based Wellsford Residential Property Trust for $620 million in stock and the assumption of $332 million in debt.

In October 2001 management announced that it expected earnings to be adversely affected for the remainder of 2001 and into the next few years, with leasing of some units proving more difficult and rents likely to fall in some cities.