Blackstone Real Estate Income Trust (BREIT) has made another move into the multifamily space with the announcement that it will acquire Resource REIT, a publicly registered non-traded REIT. BREIT will acquire Resource REIT’s outstanding shares of common stock for $14.75 per share in an all-cash $3.7 billion transaction, including the assumption of the firm’s debt.
The portfolio includes 42 garden-style multifamily communities with more than 12,600 units in some of the fastest-growing Sun Belt submarkets spanning 13 states, including Arizona, Colorado, Florida, Georgia, and Texas.
“We are very pleased to reach this agreement with BREIT, as it will provide significant and certain value to our stockholders,” said Alan F. Feldman, chairman and CEO of Resource REIT. “The transaction’s premium represents the cumulative hard work and dedication of our talented team of professionals, and we are confident that these communities are in good hands with Blackstone.”
Asim Hamid, senior managing director at Blackstone Real Estate, said the Resource REIT transaction represents BREIT’s continuation in investing in high-quality multifamily communities in the nation’s growth markets.
“Blackstone intends to capitalize on our expertise, scale, and best-in-class management practices to ensure these properties are well maintained and provide an exceptional experience for residents,” he added.
In December, Blackstone announced that it had agreed to acquire Bluerock Residential Growth REIT in a deal valued at $3.6 billion. The transaction included 30 multifamily communities with about 11,000 units—primarily garden-style apartments located in the strong Sun Belt markets of Atlanta; Austin, Texas; Denver; Orlando, Florida; and Phoenix—and a loan book secured by 24 rental assets.
The Resource REIT transaction has been unanimously approved by its board of directors and represents a premium of 63% to its most recently published net asset value of $9.06 per share, which was initially determined 12 months ago. The transaction is expected to close in the second quarter, subject to customary closing conditions.
Lazard Frères & Co. is serving as exclusive financial advisor to Resource REIT, and DLA Piper is acting as legal counsel. BofA Securities, BMO Capital Markets Corp., Eastdil Secured Advisors, and RBC Capital Markets are serving as financial advisors to BREIT, and Simpson Thacher & Bartlett is acting as legal counsel.
