Adobe Stock/piter2121

Under a definitive agreement between Blackstone and Apartment Income REIT Corp. (AIR Communities), Blackstone Real Estate Partners X will acquire all outstanding shares of AIR Communities for $39.12 per share in an all-cash transaction of approximately $10 billion, including the assumption of debt. The transaction, which will take AIR Communities private, is expected to close in the third quarter.

According to the firms, the purchase price represents a premium of 25% to AIR Communities’ closing share price on the New York Stock Exchange on April 6, the last trading day prior to the deal announcement, as well as a 25% premium to the volume weighted average share over the previous 30 days.

“AIR Communities represents the highest-quality, large-scale apartment portfolio we have ever acquired, and [it] is located in markets where 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.”

Ranked No. 46 on the National Multifamily Housing Council’s 2024 top apartment owners list, AIR Communities’ portfolio comprises 76 multifamily communities with over 27,000 units in 10 states. The communities are primarily located in coastal markets, including Boston, Los Angeles, Miami, and Washington, D.C. According to Blackstone, it plans to invest over $400 million to improve and maintain the communities.

“I am proud of the AIR team and its remarkable culture. The transaction will strengthen the AIR mission to provide homes for others, be a great place to work, act as responsible stewards of AIR communities, and be a trusted partner to AIR investors,” said AIR Communities president and CEO Terry Considine. “The business the AIR team has built will be improved and expanded by collaboration with Blackstone and a shared focus on serving residents and investing wisely. The AIR team is grateful to Blackstone for the opportunity and for its faith in what can be accomplished together.”

BofA Securities, Barclays, Goldman Sachs & Co., and Wells Fargo are acting as financial advisers and Simpson Thacher & Bartlett as legal counsel for Blackstone. For AIR Communities, Citigroup Global Markets is serving as financial adviser, and Skadden, Arps, Slate, Meagher & Flom is serving as legal counsel.

Earlier this year, Blackstone Real Estate announced that it would acquire Tricon Residential, also taking the Toronto-based company private. Last week, Tricon received the final court approval from the Ontario Superior Court of Justice for the acquisition. Tricon provides rental homes and apartments in high-growth markets, including Atlanta; Charlotte, North Carolina; Dallas; Phoenix; and Tampa, Florida, as well as Toronto. Tricon has a single-family rental development platform with approximately 2,500 houses under development as well as numerous land development projects that can support the future development of approximately 21,000 single-family homes, according to the company.