Equity Residential Acquires Apartment Portfolio from Blackstone for Nearly $1 Billion, Reports Reuters

Equity Residential has reached an agreement to acquire 11 apartment properties in its expansion markets, including Atlanta and Denver, from Blackstone for approximately $964 million. The portfolio consists of 3,572 apartment units and is targeted towards a demographic of higher-end renters.

This acquisition comes as real estate investment trusts are increasingly focusing on rental housing, especially as the supply of apartments in the U.S. is projected to decrease due to a slowdown in construction activity. This trend is expected to result in rental growth, which has remained relatively stagnant or experienced slight declines recently due to the influx of new supply in many U.S. markets following a period of low interest rates and heightened construction.

Equity Residential has managed to stay largely unaffected by supply pressures thanks to its diversified portfolio. The company reports that about 95% of its net income is generated from established markets where supply levels remain more stable. On average, its customers allocate around 20% of their income to rent, which is lower than the national average.

“This transaction is a significant step in our goal of generating a higher percentage of our annual net operating income from these strong growth expansion markets,” stated Alec Brackenridge, Chief Investment Officer of Equity Residential.

The deal is anticipated to close in the third quarter of 2024.