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Equity Residential Buying Blackstone Portfolio for Nearly $1B
Equity Residential (EQR) and Blackstone said Wednesday that Equity Residential has agreed to acquire 11 apartment properties from Blackstone Real Estate strategies in separate transactions, including Blackstone Real Estate Income Trust, Blackstone Real Estate Partners and Blackstone Property Partners, for approximately $964 million. The transactions are expected to close later in the third quarter.
Totaling 3,572 units, the properties are located in Equity Residential’s expansion markets of Atlanta, Dallas/Ft. Worth and Denver. The portfolio consists of four properties with 1,357 apartment units in Atlanta, four properties with 1,237 apartments in Dallas/Ft. Worth and three properties with 978 units in Denver.
Alec Brackenridge, EQR’s CIO, said the pricing of the portfolio was “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.”
At Blackstone Real Estate, senior managing director Asim Hamid said, “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.”
Eastdil Secured, RBC Capital Markets, Santander and Sumitomo Mitsui Banking Corporation acted as Blackstone’s financial advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s legal counsel. Neal Gerber & Eisenberg LLP, Hogan Lovells, and Bryan Cave Leighton Paisner LLP served as Equity Residential’s legal counsel.
Pictured: An EQR property in Denver.
- ◦Sale/Acquisition
