CHICAGO & NEW YORK – Equity Residential (NYSE: NYSE:) has struck a deal to purchase 11 apartment properties from various Blackstone (NYSE: BX) real estate funds for approximately $964 million. The acquisition, pending customary closing conditions, is set to be finalized in the third quarter of 2024.
The properties, averaging eight years of age, are spread across Equity Residential’s growth markets in Atlanta, Dallas/Ft. Worth, and Denver, totaling 3,572 apartment units. This move aligns with Equity Residential’s strategy to cater to its high-end renter demographic and expand its footprint in these areas.
The company’s Executive Vice President and Chief Investment Officer, Alec Brackenridge, stated that the acquisition is a strategic step toward increasing the company’s annual net operating income from these markets.
Blackstone’s Senior Managing Director, Asim Hamid, expressed satisfaction with the transaction, noting the institutional demand for quality assets and the continued strong performance of the rental housing sector. Blackstone’s financial advisors for the deal included Eastdil Secured, RBC Capital Markets, LLC, Santander (BME:), and Sumitomo Mitsui (NYSE:) Banking Corporation (SMBC), with legal counsel provided by Simpson Thacher & Bartlett LLP.
Equity Residential’s legal counsel was provided by Neal Gerber & Eisenberg LLP, Hogan Lovells, and Bryan Cave Leighton Paisner LLP.
Equity Residential is a S&P 500 company known for acquiring, developing, and managing residential properties in dynamic cities. With this transaction, Equity Residential reaffirms its earnings guidance issued on July 29, 2024. The company owns or has investments in 299 properties, comprising 79,738 apartment units, with a presence in several major cities and a growing presence in markets like Denver, Atlanta, Dallas/Ft. Worth, and Austin.
Blackstone is a leading global real estate investor with $336 billion of investor capital under management. It owns and operates a diverse portfolio of commercial real estate worldwide, including logistics, data centers, residential, office, and hospitality sectors.
The information for this article is based on a press release statement.
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