AvalonBay, EQR Merger to Create $69B Giant
The deal is on track to close during the second half of 2026.
AvalonBay Communities and Equity Residential will join forces in a merger that will create a $69 billion firm, the companies announced on Thursday. Rumors of a potential deal had been swirling since earlier this spring.
Expected to close during the second half, the merger will create a firm with 180,000 units and a pro forma market capitalization of $52 billion, company officials said in a statement.
The new firm will bring together two of the industry’s largest development pipelines. At most recent report, AvalonBay owned or held an interest in 319 properties comprising 98,000 units in 11 states and Washington, D.C. Twenty-five of those assets are under development.
Equity Residential owns and manages more than 85,000 units, with a focus on major coastal markets and on the Atlanta, Austin, Dallas-Fort Worth and Denver metros.
AvalonBay President & CEO Benjamin Schall will serve as CEO of the new company, which will be jointly headquartered in Arlington, Va., AvalonBay’s home office, and Chicago, Equity Residential’s headquarters city.
Upon the merger’s closing, Mark Parrell will retire as CEO of Equity Residential after eight years in the role. More appointments will be announced prior to closing. Steve Sterrett, the former chief financial officer of Simon Property Group, will serve as the new company’s board chair.
Among the strategic benefits of the merger cited by the companies is their combined development pipeline, which encompasses 32 communities and 10,800 units. Their additional development rights pipeline is valued at $4.2 billion.
Affordable and mixed-income communities will be a focus, as well, the companies said. Together, the AvalonBay-Equity Residential footprint affordable footprint includes about 7,200 units. On the affordable finance front, the companies plan a bridge loan facility that will provide predevelopment capital for affordable projects and expanded partnerships with nonprofit developers. In addition, the new company will pursue preservation through a naturally occurring affordable housing initiative.
This is a developing story. Check back for additional details.
