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.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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