Affiliates of Blackstone Real Estate have entered into an agreement with Bluerock Residential Growth REIT to acquire its multifamily asset in an all-cash transaction valued at $3.6 billion, or $24.25 per share.
Under the terms of the agreement, Blackstone will acquire 30 multifamily properties of approximately 11,000 units as well as a loan book secured by 24 multifamily assets. The properties are garden-style assets built, on average, in 2000. The majority of the properties are located in Atlanta, Phoenix, Orlando, Denver and Austin.
Prior to the acquisition, Bluerock intends to spin off its single-family rental business to its shareholders in what will be a newly formed REIT called Bluerock Homes Trust that will be externally managed by an affiliate of Bluerock Real Estate. The new REIT will own interests in approximately 3,400 homes, including 2,000 through preferred/mezzanine investments, located in markets across the US. The shares of Bluerock Homes Trust will have a current implied net asset value estimated at $5.60 (based on the midpoint of the valuation range provided by Duff & Phelps), for each share of company common stock.
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The acquisition by Blackrock is currently expected to occur in the second quarter of 2022 and is contingent upon a successful spin-off, as well as customary closing conditions, including the approval of Bluerock's shareholders, who will vote on the transaction at a special meeting.
Morgan Stanley & Co. LLC and Eastdil Secured LLC are the Company's lead financial advisors with BofA Securities also serving as an advisor. Wachtell, Lipton, Rosen & Katz, Kaplan Voekler Cunningham & Frank, PLC, and Vinson & Elkins, LLP are serving as the Company's legal counsel. Barclays and Wells Fargo Securities LLC are Blackstone's financial advisors and Simpson Thacher & Bartlett LLP is Blackstone's legal advisor.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
