Blackstone to acquire AIR Communities in $10bn deal

Blackstone to acquire AIR Communities in $10bn deal

Blackstone announced today Blackstone Real Estate Partners X will acquire Apartment Income REIT Corp. (AIR Communities) in a $10 billion all-cash deal.

The purchase price, $39.12 per share, represents a premium of 25% to AIR Communities’ closing share price on the NYSE on April 5, 2024, the last trading day prior to the announcement of the transaction.

AIR Communities boasts a portfolio of 76 high-quality rental properties concentrated in major coastal cities like Miami, Los Angeles, Boston, and Washington D.C.

Blackstone plans to invest over $400 million in maintaining and improving these existing communities, with the potential for further investments to fuel growth.

“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. 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 working together,” said Terry Considine, President & CEO of AIR Communities.

“AIR Communities represents the highest quality, large scale apartment portfolio we have ever acquired, and is located in markets where multifamily fundamentals are strong. 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,” said Nadeem Meghji, Global Co-Head of Blackstone Real Estate.

The transaction was unanimously approved by the AIR Communities Board of Directors and is expected to close in the third quarter of 2024, subject to approval by AIR Communities’ stockholders and other customary closing conditions. As a condition to the transaction, AIR has suspended payment of its quarterly dividend, effective immediately.

Subject to and upon completion of the transaction, AIR Communities’ common stock will no longer be listed on the New York Stock Exchange.