Lehman Brothers Holdings is considering selling its largest real estate asset, apartment-complex owner Archstone, which it acquired in a $22 billion leveraged buyout. Bloomberg reports Gerard Uzzi, a lawyer for Lehman creditors, said in a court filing that the sale would be made to two affiliates — Lehman Commercial Paper Inc. and Luxembourg Residential Properties Loan Finance also known as Luxco. The terms of the sale have yet to be defined, according to the filing. Uzzi said in a footnote that the deal might represent “the most valuable give-up” by Lehman to its affiliates. Archstone has required two bailouts from its bankers in the last two years. Lehman Brothers won court approval in May for a second attempt at savings the firm’s investment in Archstone. The restructuring agreement gave Lehman authority to join Barclays and Bank of America Corp. (BAC) in converting $5.2 billion worth of Archstone loans to preferred equity, according to Bloomberg. In 2009, the three firms committed an additional $484 million in financing to Archstone. Write to Christine Ricciardi.

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