Equity Residential to Acquire $1 Billion Apartment Portfolio from Blackstone Real Estate
07 Agosto 2024 - 8:01AM
Business Wire
Equity Residential (NYSE: EQR) and Blackstone (NYSE: BX) today
announced 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, which remain subject to customary closing conditions,
are expected to close in the third quarter of 2024.
The properties, which are located in Equity Residential’s
expansion markets of Atlanta, Dallas/Ft. Worth and Denver, total
3,572 apartment units and are on average eight years old. These
properties are attractive to Equity Residential’s higher end renter
demographic and accelerate its growth in these markets. Through its
industry leading operating platform, Equity Residential expects to
unlock additional opportunities and value with these properties.
The portfolio consists of four properties with 1,357 apartment
units in Atlanta, four properties with 1,237 apartment units in
Dallas/Ft. Worth and three properties with 978 apartment units in
Denver. In connection with this transaction, Equity Residential is
reaffirming the earnings guidance provided in its Second Quarter
2024 Earnings Release on July 29, 2024.
“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,” said Alec Brackenridge, Equity Residential’s Executive Vice
President and Chief Investment Officer. “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,
said, “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.”
Eastdil Secured, RBC Capital Markets, LLC, Santander and
Sumitomo Mitsui Banking Corporation (SMBC) 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.
About Equity Residential
Equity Residential is committed to creating communities where
people thrive. The Company, a member of the S&P 500, is focused
on the acquisition, development and management of residential
properties located in and around dynamic cities that attract
affluent long-term renters. Equity Residential owns or has
investments in 299 properties consisting of 79,738 apartment units,
with an established presence in Boston, New York, Washington, D.C.,
Seattle, San Francisco and Southern California, and an expanding
presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more
information on Equity Residential, please visit our website at
www.equityapartments.com.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing.
Blackstone’s real estate business was founded in 1991 and has US
$336 billion of investor capital under management. Blackstone is
the largest owner of commercial real estate globally, owning and
operating assets across every major geography and sector, including
logistics, data centers, residential, office and hospitality. Our
opportunistic funds seek to acquire undermanaged, well-located
assets across the world. Blackstone’s Core+ business invests in
substantially stabilized real estate assets globally, through both
institutional strategies and strategies tailored for income-focused
individual investors including Blackstone Real Estate Income Trust,
Inc. (BREIT). Blackstone Real Estate also operates one of the
leading global real estate debt businesses, providing comprehensive
financing solutions across the capital structure and risk spectrum,
including management of Blackstone Mortgage Trust (NYSE: BXMT).
Forward-Looking Statements
This press release contains forward-looking statements and
information within the meaning of the federal securities laws.
These forward-looking statements can be identified by the use of
forward -looking terminology such as “outlook,” “indicator,”
“believes,” “expects,” “potential,” “continues,” “identified,”
“may,” “will,” “should,” “seeks,” “approximately,” “predicts,”
“intends,” “plans,” “estimates,” “anticipates”, “confident,”
“conviction” or other similar words or the negatives thereof. These
statements may include financial estimates and their underlying
assumptions and are based on current expectations, estimates,
projections and assumptions made by management. While management
believes the assumptions underlying its forward-looking statements
are reasonable, such information is inherently subject to
uncertainties and may involve certain risks, including, without
limitation, changes in general market conditions, future
operations, future performance and statements regarding identified
but not yet closed acquisitions or dispositions. There are or may
be important factors that could cause actual outcomes or results to
differ materially from those indicated in such forward-looking
statements. These factors and other risks and uncertainties are
described under the heading “Risk Factors” in Equity Residential’s
or BREIT’s respective Annual Reports on Form 10-K and subsequent
periodic reports and BREIT’s prospectus filed with the Securities
and Exchange Commission (SEC), each of which are accessible on the
SEC’s website at www.sec.gov. These factors should not be construed
as exhaustive and should be read in conjunction with the other
cautionary statements that are included herein (or in Equity
Residential’s or BREIT’s respective public filings). Many of these
uncertainties and risks are difficult to predict and beyond
management’s control. Forward-looking statements are not guarantees
of future performance, results or events. Except as otherwise
required by federal securities laws, Equity Residential and BREIT
do not undertake any obligation to update, revise or supplement
forward-looking statements that become untrue because of new
information, subsequent events or otherwise.
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Equity Residential Marty McKenna mmckenna@eqr.com
Blackstone Jeffrey Kauth Jeffrey.Kauth@Blackstone.com
Blackstone (NYSE:BX)
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