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Blackstone Agrees to Acquire Resource REIT in $3.7B Cash Deal

Cannery-Lofts-Dayton-Ohio

Resource REIT owns Cannery Lofts Apartments, a 156-unit community in Dayton, Ohio. The Philadelphia-based REIT's total portfolio comprises 42 communities totaling some 12,600 units across 13 states.

NEW YORK CITY AND PHILADELPHIA — Blackstone Real Estate Income Trust Inc. (BREIT) has agreed to acquire Resource REIT, a publicly registered, non-traded REIT based in Philadelphia, for $3.7 billion in an all-cash transaction.

Under the terms of the deal, BREIT will acquire all of the outstanding shares of common stock of Resource REIT for $14.75 per share, including the assumption of existing debt. The transaction is expected to close in the second quarter.

Resource REIT’s portfolio currently consists of 42 garden-style apartment communities totaling more than 12,600 units across 13 states, including Arizona, Colorado, Florida, Georgia and Texas.

“This transaction represents a continuation of our high-conviction investing in top-quality multifamily communities in growth markets across the country,” says Asim Hamid, senior managing director at Blackstone. “We intend to capitalize on our expertise, scale and management practices to ensure these properties are well maintained and provide an exceptional experience for residents.”

Lazard Frères & Co. LLC is acting as exclusive financial advisor to Resource REIT, and DLA Piper LLP is acting as the firm’s legal counsel. BofA Securities, BMO Capital Markets Corp., Eastdil Secured Advisors LLC and RBC Capital Markets LLC are acting as financial advisors to BREIT. Simpson Thacher & Bartlett LLP is acting as the New York City-based real estate giant’s legal counsel.

“We are very pleased to reach this agreement with BREIT, as it will provide significant and certain value to our stockholders,” says Alan Feldman, chairman and CEO of Resource REIT. “The transaction’s premium represents the cumulative hard work and dedication of our talented team of professionals, and we are confident that these communities are in good hands with Blackstone.”

The stock price of Blackstone Inc. (NYSE: BX), the parent company of BREIT, which is a publicly registered, non-traded REIT, opened at $104.82 per share on Monday, Jan. 24, up from $65.35 per share a year ago.

— Taylor Williams




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