For roughly $964m, Equity Residential has agreed to purchase 11 apartment buildings from Blackstone Real Estate strategies in three different transactions: Blackstone Real Estate Income Trust, Blackstone Real Estate Partners, and Blackstone Property Partners.
It is anticipated that the transactions would close in the third quarter of 2024, subject to usual closing conditions.
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The properties, which total 3,572 apartment units and are eight years old on average, are situated in Atlanta, Dallas/Fort Worth, and Denver, Equity Residential’s expanding markets.
These homes appeal to Equity Residential’s higher-end renter base, accelerating its expansion in these locations.
Equity Residential anticipates unlocking additional prospects and value with these properties through its operating platform.
The portfolio includes four locations in Atlanta with 1,357 apartments, four in Dallas/Fort Worth with 1,237 apartments, and three in Denver with 978 apartments.
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By GlobalDataIn regard to this acquisition, Equity Residential reaffirms the earnings guidance stated in its Second Quarter 2024 Earnings Release on 29 July 2024.
Alec Brackenridge, Equity Residential’s executive vice president and chief investment officer stated: “We are pleased to add these high-quality, well-located properties to our growing portfolios in Atlanta, Dallas/Ft. Worth and Denver at pricing that is attractive compared to replacement costs. This transaction is a significant step in our goal of generating a higher percentage of our annual net operating income from these strong growth expansion markets. We appreciate partnering with Blackstone on this mutually beneficial transaction and look forward to continuing to grow the relationship.”
Asim Hamid, senior managing director at Blackstone Real Estate, added: “This transaction represents an excellent outcome for our investors and demonstrates the strong institutional demand for high quality assets. Rental housing remains one of our highest-conviction themes, and we continue to see strong fundamentals in attractive markets. We’re pleased to have worked with EQR on this transaction, who will be an excellent steward of these properties going forward.”
Blackstone’s financial advisers included Sumitomo Mitsui Banking Corporation (SMBC), Santander, RBC Capital Markets, and Eastdil Secured, and they were represented by Simpson Thacher & Bartlett LLP in legal matters.
Equity Residential’s legal counsel was provided by Neal Gerber & Eisenberg LLP, Hogan Lovells, and Bryan Cave Leighton Paisner LLP.
