Blackstone and Apartment Income REIT Corp. (AIR Communities) said that Blackstone Real Estate Partners X will acquire all outstanding common shares of AIR Communities. The all-cash transaction is valued at approximately $10 billion, including the assumption of debt.
Totaling 26,626 units, AIR Communities’ portfolio of 76 rental communities is concentrated primarily in coastal markets including Miami, Los Angeles, Boston and Washington, DC. Blackstone plans to invest more than $400 million to maintain and improve the existing communities in the portfolio and may invest additional capital to fund further growth.
“AIR Communities represents the highest quality, large scale apartment portfolio we have ever acquired, and is located in markets where multifamily fundamentals are strong,” said Nadeem Meghji, global co-head of Blackstone Real Estate. “We are very impressed by the terrific operating team at AIR Communities and look forward to working closely with them, while continuing to deliver a fantastic resident experience.”
The transaction was unanimously approved by the AIR Communities board and is expected to close in the third quarter. As a condition to the transaction, AIR has suspended payment of its quarterly dividend, effective immediately.
BofA Securities, Barclays, Goldman Sachs & Co. LLC and Wells Fargo are acting as Blackstone’s financial advisors. Simpson Thacher & Bartlett LLP is serving as Blackstone’s legal counsel. Citigroup Global Markets Inc. is acting as AIR Communities’ financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel.
