From a small northwestern observatory…

Private Equity Real Estate reports this morning that the Estate of Lehman is challenging Equity Residential’s proposed acquisition of BofA’s 26.5% stake with protests to the Securities Exchange Commissions.

PERE reports that Lehman, which owns 47% of Archstone and serves as manager (the remainder is owned by Barclays) had filed a plan to emerge from Chapter 11 by paying $65 Billion to pay creditors, who hold about $450 Billion in claims.  Selling Archstone (they actually proposed an IPO) would have helped raise this sum (Lehman currently only has about $23 Billion), but Sam Zell’s move has left this idea hanging out to dry.

It’s going to be fun to watch.  We’ll keep you posted.