Dean Barber’s Post

Blackstone Agrees to Acquire Apartment REIT AIR Communities for $10B, Take Company Private NEW YORK CITY AND DENVER — Private equity behemoth Blackstone has agreed to acquire AIR Communities for $10 billion in an all-cash deal that would take the Denver-based multifamily REIT private. The deal is expected to close during the third quarter. AIR Communities, which is formally named Apartment Income REIT Corp., owns 76 multifamily properties totaling roughly 27,000 units across 10 states and Washington D.C. The properties are primarily concentrated in coastal markets such as Los Angeles, Miami and Boston. Under the terms of the deal, Blackstone will also assume all of AIR Communities’ outstanding debt. Blackstone also plans to invest more than $400 million to maintain and improve the existing communities in the portfolio. The purchase price of $39.12 per share represents a premium of 25 percent to AIR Communities’ closing share price on April 5, 2024, the last full day of trading prior to the announcement. The price also represents a 25 percent premium to AIR Communities’ weighted average share price over the previous 30 days. “AIR Communities represents the highest quality, large-scale apartment portfolio we have ever acquired and is located in markets where multifamily fundamentals are strong,” says Nadeem Meghji, global co-head of real estate for Blackstone. The announcement coincides with court approval of Blackstone’s $3.5 billion acquisition of Canadian multifamily owner-operator Tricon Residential. The private equity giant is also taking Tricon private as part of that deal. BofA Securities, Barclays, Goldman Sachs and Wells Fargo are acting as Blackstone’s financial advisors, and Simpson Thacher & Bartlett LLP is serving as Blackstone’s legal counsel. Citigroup Global Markets Inc. is acting as AIR Communities’ financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as its legal counsel. The stock price of AIR Communities stood at $38.45 per share at the opening bell, up nearly 20 percent from its closing price of $31.35 per share on Friday, April 5 and up about 7 percent from $35.51 per share a year ago. Blackstone’s stock price opened at $127.49 per share on Monday, April 8, up from $81.57 per share a year ago. For more, click on the link below. #escrowcredirt #newmarktitleservices

Blackstone to take Apartment Income REIT private in $10 bln deal. Blackstone announces plan to take private rental housing firm Apartment Income REIT for $10 billion, including debt. Each share of AIR Communities will be bought at $39.12, marking a 25% premium over Friday's closing price; shares surged by approximately 23%. Blackstone's strategic move reflects its focus on rental housing amid expectations of declining apartment supply in the U.S. AIR Communities holds a diversified portfolio across Eastern and Western coastal markets, with robust multifamily fundamentals. Nadeem Meghji, Global Co-Head of Blackstone Real Estate, emphasizes AIR Communities as the highest-quality apartment portfolio acquired by Blackstone. AIR Communities reported a 6.2% increase in same-store rental revenue in Q4, surpassing growth rates of other publicly listed REITs like Mid-America Apartments and Equity Residential. Blackstone plans to invest an additional $400 million to enhance the 76 rental housing communities acquired. Blackstone Real Estate Income Trust, despite turbulence in late 2022, outperformed non-listed peers by 600 basis points in 2023. The deal follows Blackstone's agreement in January to acquire Canadian single-family rental housing firm Tricon Residential. Blackstone's real estate portfolio, valued at $586 billion, underscores its substantial presence in the market. #REIT #Blackstone

🏢 Equity Residential is making waves in the multifamily sector with a $964 million acquisition of 11 apartment complexes from Blackstone, marking the largest multifamily purchase by a public REIT in the U.S. in seven years! With over 3,500 units in high-growth markets like Atlanta, Denver, and Dallas/Fort Worth, this move aligns with the optimism around a potential rebound in rents and property values. #Multifamily #REITs

Blackstone To Buy Apartment REIT For $10B: The private equity giant announced Monday that it would pay $39.12 per share in an all-cash transaction to acquire the publicly traded firm, also known as AIR Communities, at a 25% premium on the company's closing price Friday. Blackstone has agreed to assume all of AIR Communities’ debt along with its portfolio of 76 rental communities in 10 states and Washington, D.C. “AIR Communities represents the highest quality, large scale apartment portfolio we have ever acquired, and is located in markets where multifamily fundamentals are strong,” Nadeem Meghji, global co-head of Blackstone Real Estate, said in a statement. The firm now expects 12% of the nation’s 50 largest apartment markets to see rent growth at 3% or more, while only 8% of cities, or four markets, are forecast to see rent growth below 1%. A Blackstone spokesperson said that the firm is going on offense because of what it sees as the bottoming out of real estate values, with $65B in capital to deploy. https://lnkd.in/gxVFMAA7

Blackstone's Multifamily Investment in AIR Communities: Seizing Opportunities 💼 Blackstone acquires upscale apartment owner AIR Communities (AIRC) for $10 billion, signaling a return to aggressive investments in real estate. Key Points: 🏢 Acquisition of AIR Communities includes 76 rental housing communities primarily in coastal markets. 💰 Blackstone plans to invest an additional $400 million to enhance the properties. 📈 Largest transaction in the multifamily market for Blackstone, showcasing bullishness on rental housing and commercial real estate. Investment Strategy: 🔍 Blackstone sees signs of real estate recovery and believes in seizing opportunities during uncertain times. 💡 Recent investments include acquiring a stake in a $17 billion loan portfolio and forming ventures in data centers and single-family rental homes. Transaction Details: 💲 Acquisition price of $39.12 per share, a 25% premium to AIR Communities' closing share price. 💼 Transaction valued at about $10 billion, including debt assumption, to be completed in the third quarter. Outlook: 🏘 Blackstone views multifamily and rental housing as promising segments despite challenges like new supply and higher interest rates. 📈 Markets in AIR Communities' portfolio show resilience compared to others, making it an attractive investment opportunity. Conclusion: 🔄 Blackstone's move reflects confidence in real estate markets and a strategic approach to capitalize on emerging opportunities in multifamily properties. https://lnkd.in/ge-Y3hax

After months of sluggish sales activity, apartment trades picked up earlier this year with major deals from KKR and Blackstone. Now, the public REITs are getting into the action with today's blockbuster announcement that Equity Residential is paying Blackstone nearly $1 billion for 3,572 apartment units spread across 11 properties in Atlanta, DFW and Denver. In the press release announcing the sale, EQR said the 11 properties will be attractive to its “higher-end renter demographic,” while also accelerating the firm’s growth in its coveted Sun Belt expansion markets. But the takeaway from this deal isn't just EQR's (and other REITs, for that matter) designs on the Sun Belt. It's also a sign that despite near-term supply issues, the region remains attractive to apartment investors. And, as Jay Parsons, told me, it is an indicator that the"era of price discovery is coming to an end — at least for well-located class A and B-plus apartments.” Here is my story about the sale. https://lnkd.in/eTE8ma7B

WHY WON’T WALL STREET BUILD SFR? Just a few months ago, Blackstone paid $3.5B to purchase Tricon Residential, which owns 38,000 single-family rental homes across the Sun Belt and has a $1B development pipeline. That’s a strategy to control supply and pricing rent which Wall Street began shortly after the 2008 housing crisis. They have made billions from sucking all the equity from working families and minority neighborhoods. SFR should be owned by families, not Wall Street. Paying 25% premium for multifamily REIT with planned $400 million investment will require huge rental increases to justify investor interest. These increases will ripple to the SFR rentals too. Read below ⬇️ “With perfect hindsight into the 2008 housing collapse, it is clear that patient and flexible capital would have enabled many homeowners to hold onto their home equity. Entire neighborhoods would not have been devastated, and a generation of Black and Latino or Hispanic assets would not have washed out to sea.” -Brookings Institute ⬇️ The mission statement of Ellavoz.com is to keep #homeownership attainable for hard working American families in underserved communities. This is the opposite mission of most Wall Street real estate investment funds. If you believe in our mission, and #sharedvalues #impactinvesting please contact me personally to discuss joining our #impactangelnetwork.

Jay Parsons provided great insights on the recent Equity Residential acquisition! This deal underscores two critical trends in the multifamily market: the shift to 5% cap rates for prime Class A/B+ apartments and the strategic pivot to high-growth Sun Belt and Mountain regions. EQR's move potentially highlights the growing attractiveness of Dallas, Denver, and Atlanta as core markets. At LakeRock Capital, we share Blackstone's bullish outlook on rental housing, recognizing the strong fundamentals in these markets. While large private equity groups dominate, our focus remains on navigating these challenges and delivering value for our clients in the multifamily sector. Let's discuss: How are others adjusting their strategies in response to these market shifts? #MultifamilyInvestment #CRE #RealEstateTrends #LakeRockCapital #InvestmentStrategies

“Equity Residential Buys Apartment Portfolio for Nearly $1 Billion - Purchase of apartments is the largest by a public REIT in seven years” Equity Residential has agreed to purchase 11 apartment complexes from Blackstone for $964 million. The portfolio includes over 3,500 Atlanta, Denver, and Dallas/Fort Worth units. This is the largest U.S. multifamily purchase by a public REIT in seven years. See The Wall Street Journal article posted in the comments below 👇. 1) Seller's Perspective (Blackstone): - Selling to return cash to investors. - Remains bullish on rental housing, having recently acquired Apartment Income REIT for $10 billion. - Blackstone sees the sale as beneficial, highlighting a strong demand for quality assets. - Perhaps Blackstone is raising cash to meet investor redemption requests. 2) Buyer's Perspective (Equity Residential): - Aligns with the strategy to expand in growth markets. - Attractive pricing compared to replacement costs. 💡Are you currently purchasing multifamily properties? Share your thoughts in the comments below 👇! Please like 👍, comment below 👇, or share 👉. Click the 🔔 in my profile to get notified of my posts. And follow me for more content like this. #home #multifamily #homerental #buildtorent

Blackstone has announced it plans to acquire all outstanding shares of Toronto-based Tricon Residential Inc. and take the firm private in a $3.5 billion equity transaction (all figures U.S. unless otherwise stated), reported Real Estate News Exchange (RENX). "Blackstone Real Estate Partners X together with Blackstone Real Estate Income Trust, Inc. (BREIT) are offering $11.25 in cash per Tricon common share, a premium of 30 per cent to Tricon’s closing share price on the NYSE on Jan. 18. It represents a 42 per cent premium to the volume-weighted average share price on the NYSE over the previous 90 days." "BREIT will maintain its approximately 11 per cent ownership stake post-closing, the companies state in this morning’s announcement. Blackstone also says it remains committed to completing Tricon's existing multi-billion-dollar development plans for multifamily housing in Toronto, as well as addition an additional $1 billion to its program to upgrade its U.S. rental properties." https://lnkd.in/gxJCnTbV