Blackstone to Acquire AIR Communities for $10B
The buyer will invest upward of $400 million in the AIR portfolio.
A Blackstone fund has agreed to acquire Apartment Income REIT Corp., known as AIR Communities, for approximately $10 billion. Blackstone Real Estate Partners X will purchase the company in an all-cash transaction, assuming its existing debt and taking it private.
AIR Communities’ portfolio comprises 76 multifamily communities situated primarily in coastal markets, including Miami, Los Angeles, Boston and Washington, D.C.
Upon closing, Blackstone intends to invest upwards of $400 million into the AIR portfolio in property maintenance and improvements and may make further investments to further expand the portfolio.
Per the agreement, Blackstone will purchase all outstanding common shares of AIR for $39.12 per share. The price represents a premium of 25 percent to AIR’s closing share price on the New York Stock Exchange on Friday April 5. The deal is expected to close in the third quarter of this year.
The acquisition of AIR Communities comes on the heels of another large purchase by Blackstone. In January, Blackstone agreed to acquire Tricon Residential for $3.5 billion. Tricon’s portfolio includes a $1 billion development pipeline of single-family homes in the U.S. and an additional $2.5 billion development pipeline in Canada. That deal is expected to close in the second quarter of this year.
