A unit of private-equity behemoth Blackstone is picking up seven Atlanta-area garden apartment communities in its $3.7 billion acquisition of Philadelphia-based multifamily landlord Resource REIT Inc.
The local assets include Perimeter 5550, Perimeter Circle and Uptown Buckhead in Atlanta; the Estates at Johns Creek in Alpharetta; Tramore Village in Austell; and 1000 Spalding and the Addison at Sandy Springs in Sandy Springs. They are part of Resource REIT’s nationwide portfolio of 42 communities with more than 12,600 units, according to a press release.
The other properties are located in Arizona, California, Colorado, Florida, Illinois, Minnesota, North Carolina, Ohio, Oregon, Pennsylvania, Texas and Virginia.
Under the terms of the deal, Blackstone Real Estate Investment Trust Inc. will acquire Resource REIT and its assets for $14.75 per share in cash. The deal is expected to close in the second quarter, subject to customary closing conditions, including the approval of Resource REIT’s common stockholders.
“This transaction represents a continuation of our high-conviction investing in top-quality multifamily communities in growth markets across the U.S.,” said Asim Hamid, senior managing director at Blackstone Real Estate. “Blackstone intends to capitalize on our expertise, scale and best-in-class management practices to ensure these properties are well maintained and provide an exceptional experience for residents.”
Lazard Frères & Co. LLC is acting as Resource REIT’s exclusive financial adviser, and DLA Piper LLP (US) is acting as its legal counsel. BofA Securities, BMO Capital Markets Corp., Eastdil Secured Advisors LLC and RBC Capital Markets LLC are acting as financial advisers to Blackstone, and Simpson Thacher & Bartlett LLP is providing legal counsel.