- Equity Residential’s acquisition of 11 apartment complexes for $964M is the largest U.S. multifamily purchase by a public REIT in 7 years.
- Blackstone sold the 3.5K units in high-growth markets like Atlanta, Denver, and Dallas-Fort Worth.
- The transaction is part of a broader trend of recent multifamily investments, driven by potential interest rate cuts by the Federal Reserve.
According to WSJ, Equity Residential (EQR), a major player in the U.S. apartment market, has agreed to purchase 11 apartment complexes from Blackstone (BX) for $964M.
Deal Details
The acquisition, encompassing over 3.5K units in Atlanta, Denver, and Dallas-Fort Worth, is the largest U.S. multifamily purchase by a public REIT in the past seven years.
The seller, Blackstone (BX), remains active in the apartment market, having recently acquired Apartment Income REIT for approximately $10B. The sale went down in part to return cash to investors.
But Asim Hamid, senior managing director at Blackstone Real Estate, re-emphasized the firm’s continued confidence in the U.S. rental housing market.
Strategic Acquisition
Equity Residential, which owns about 80K units across nearly 300 properties, was attracted to the portfolio due to its location in high-growth markets.
Alec Brackenridge, the company’s chief investment officer, also highlighted the attractive pricing of these relatively new complexes, which are, on average, only eight years old.
Bigger Picture
The multifamily sector has seen significant activity, with KKR & Co. (KKR) purchasing over 5.2K units for $2.1B from Quarterra and Brookfield (BN) acquiring a portfolio of 7K apartments for $1.55B.
Three of Blackstone’s funds hold the properties sold by Blackstone to Equity Residential, and the transactions are expected to close in Q3.
Positive Outlook
The acquisition came as apartment values fluctuated, influenced by persistently high interest rates and the delayed impact of an unprecedented multifamily construction boom.
Despite these challenges, a series of large deals in 2023 indicated investor optimism about a rebound, supported by the possibility of the Federal Reserve cutting rates in September.
Investor sentiment is also being propped up by the absorption of new supply in several markets, as well as rising rents in certain Northeast and Midwest cities.
Equity Residential’s CEO, Mark Parrell, noted in a recent earnings call that lower construction starts in oversupplied markets will likely result in lower deliveries in 2026–2027, offering longer-term relief.
