Bank of America, Barclays sell Archstone stake

NEW YORK — Bank of America Corp. and Barclays Bank PLC are selling their stake in apartment building owner Archstone to Lehman Brothers Holdings Inc.'s bankruptcy estate for $1.58 billion.

The transaction will give Lehman's estate full ownership of Englewood, Colo.-based Archstone.

The move blocks plans by Chicago-based Equity Residential to buy the stake, which would get $150 million from the two banks and Lehman for walking away from the deal.

BofA and Barclays joined Lehman in a $22.2 billion leveraged buyout of Archstone-Smith Trust in 2007. Initially, Lehman owned a 47 percent stake in Archstone and the banks owned a 53 percent stake.

Lehman collapsed in 2008 in the biggest corporate bankruptcy in U.S. history.

The companies say the transaction is expected to close in the second quarter.