American investment management firm Blackstone Inc. is set to acquire Bluerock Residential Growth REIT Inc. in a $3.6-billion deal, Bloomberg reported.
The transaction is valued at a premium of about 124% over September 15’s closing price, the day before news broke out about the firm looking at a possible sale. Bluerock shares have since jumped 76% to $27.20, closing Friday at $15.44.
The deal covers 30 multifamily rental buildings with some 11,000 nits and a loan book secured by 24 rental assets. The majority of properties are premium garden-style apartments in cities such as Atlanta, Phoenix, Orlando, Denver, and Austin.
Blackstone Real Estate Senior Managing Director Asim Hamid said the transaction will ensure that the properties will continue to be operated at the “highest standards” for tenants and neighboring communities.
The transaction is scheduled to be closed in the second quarter. BRG is up 70.27%, while BX is down 2.69%.