Blackstone Completes Privatization of AIR Communities for $10B

Photo credit: Blackstone

New York City-based Blackstone has completed its previously announced acquisition of all outstanding common shares of Denver-based AIR Communities for $39.12 per share in an all-cash transaction valued at approximately $10 billion, including the assumption of debt.

The transaction was announced on April 8, 2024.

The purchase price represents a premium of 25% to AIR Communities’ closing share price on the NYSE on April 5, 2024, the last trading day before the announcement of the transaction, and a 25% premium to the volume weighted average share price on the NYSE over the previous 30 days.

“I am proud of the AIR team and its remarkable culture. The transaction will strengthen the AIR mission to provide homes for others, be a great place to work, act as responsible stewards of AIR communities, and be a trusted partner to AIR investors. The business the AIR team has built will be improved and expanded by collaboration with Blackstone and a shared focus on serving residents and investing wisely. The AIR team is grateful to Blackstone for the opportunity and for its faith in what can be accomplished working together,” said Terry Considine, president & CEO of AIR Communities.

AIR Communities’ portfolio consists of 76 high-quality rental housing communities concentrated primarily in coastal markets including Miami, Los Angeles, Boston and Washington D.C. Blackstone plans to invest more than $400 million to maintain and improve the existing communities in the portfolio and may invest additional capital to fund further growth.

“AIR Communities represents the highest quality, large-scale apartment portfolio we have ever acquired, and is located in markets where multifamily fundamentals are strong. We are very impressed by the terrific operating team at AIR Communities and look forward to working closely with them while continuing to deliver a fantastic resident experience,” said Nadeem Meghji, global co-head of Blackstone Real Estate.

Citigroup Global Markets Inc. acted as AIR Communities’ financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP served as AIR Communities’ legal counsel.

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