Leslie Shaver, Multifamily Dive. Blackstone, a New York City-based investment manager, and Apartment Income REIT Corp. (AIR), based in Denver, announced an agreement for Blackstone Real Estate Partners X to acquire all AIR's outstanding common shares for approximately $10 billion, including debt assumption. Blackstone, the world's largest commercial real estate owner, is buying AIR at $39.12 per share, a 25% premium over its closing price on April 5, 2024. AIR's portfolio includes 27,010 units across 76 rental communities, primarily in coastal markets like Miami, Los Angeles, Boston, and Washington, D.C. Blackstone plans to invest over $400 million in these properties for maintenance and improvement, with potential for further investment for growth.
Blackstone, with $337 billion of U.S. investor capital under management, has previously acquired apartment firms including American Campus Communities, Preferred Apartment Communities, and Resource REIT. Nadeem Meghji, Blackstone Real Estate's global co-head, highlighted AIR's portfolio as exceptionally high-quality. AIR has operated independently since 2020 after spinning off from Aimco. Terry Considine, Aimco's founder, led AIR post-separation.
The deal comes after a period of low merger-and-acquisition activity in the apartment market. MSCI Real Assets notes this transaction could indicate a recovery from COVID-related shocks and potentially inspire more deals in the sector, as public markets have undervalued apartments relative to private valuations.
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𝗘𝗻𝗲𝗿𝗴𝘆 𝗣𝗿𝗼𝗰𝘂𝗿𝗲𝗺𝗲𝗻𝘁 | 𝗥𝗲𝗮𝗹-𝘁𝗶𝗺𝗲 𝗘𝗻𝗲𝗿𝗴𝘆 𝗔𝗻𝗮𝗹𝘆𝘁𝗶𝗰𝘀 | 𝗘𝗻𝗲𝗿𝗴𝘆 𝗜𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 | 𝟭𝘀𝘁 𝗗𝗲𝗴𝗿𝗲𝗲 𝗕𝗿𝗮𝘇𝗶𝗹𝗶𝗮𝗻 𝗝𝗶𝘂 𝗝𝗶𝘁𝘀𝘂 𝗕𝗹𝗮𝗰𝗸 𝗕𝗲𝗹𝘁
4moBlackstone is throwing $$$ around everywhere.