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BREIT Acquiring Preferred Apartment Communities REIT
Preferred Apartment Communities (PAC) said Wednesday it had entered into a definitive agreement with Blackstone Real Estate Income Trust, Inc. (BREIT), under which BREIT will acquire all outstanding shares of common stock of PAC for $25 per share. The all-cash transaction is valued at approximately $5.8 billion.
Under the terms of the agreement, BREIT will acquire PAC’s portfolio of 44 multifamily communities totaling approximately 12,000 units concentrated largely in Atlanta, Orlando, Tampa, Jacksonville, Charlotte and Nashville, and 54 grocery-anchored retail assets comprising approximately six million square feet located mostly in Atlanta, Orlando, Nashville and Raleigh.
BREIT will also acquire the Atlanta-based REIT’s two Sun Belt office properties and 10 mezzanine / preferred equity investments collateralized by under-construction and newly-built multifamily assets.
Joel T. Murphy, PAC’s chairman and CEO, said, “This transaction is an excellent outcome for our stockholders and the culmination of the hard work our first-class team has done over the past few years to simplify and refocus our portfolio.”
Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate, said PAC has “a terrific property management and operations team that shares our commitment to being best-in-class owners. They have deep relationships and real estate expertise within the Sun Belt region, and we look forward to working closely with them to grow the business and continue to deliver a great experience for residents and tenants.”
The purchase price represents a premium of approximately 39% over the closing stock price on Feb. 9, the date prior to news reports that PAC was exploring strategic options including a sale. The acquisition is expected to close in the second quarter.
- ◦Sale/Acquisition
