NEW YORK CITY AND DENVER — Blackstone (NYSE: BX) has agreed to acquire Denver-based multifamily REIT AIR Communities (NYSE: AIRC) for $10 billion in an all-cash transaction. The deal, which is expected to close during the third quarter, will take AIR Communities private. Under the terms of the deal, Blackstone will assume all of the REIT’s outstanding debt.
Formerly known as Apartment Income REIT Corp., AIR Communities owns 76 communities totaling approximately 27,000 apartments. The properties are spread across 10 states and Washington D.C., but are concentrated in coastal markets such as Los Angeles, Miami and Boston. Blackstone plans to invest more than $400 million to maintain and improve the assets in the portfolio.
BofA Securities, Barclays, Goldman Sachs and Wells Fargo will act as Blackstone’s financial advisors. Simpson Thacher & Bartlett LLP is serving as Blackstone’s legal counsel. Citigroup Global Markets Inc. will act as AIR Communities’ financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as its legal counsel.