Bluerock Residential Growth REIT, a multifamily specialist, is considering a sale or possibly recapitalization, Bloomberg reports, citing anonymous sources.
Bluerock is the latest in a string of REITs to either consider a sale or pull the trigger on some form of M&A deal.
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The company's holdings include properties in various growth markets, such as Atlanta, Houston, Orlando and Phoenix, totaling about 18,000 units. Portfolio occupancy was 96.2% at the end of Q2 2021, up 90 basis points compared with a year earlier, according to the company. Same-property rents were up 3% year-over-year.
When word of the possible sale broke, Bluerock stock rose from below $11 per share on Thursday to nearly $12 per share later that day before settling a little lower on Friday, trading at around $11.60 midday.
Earlier this month, Cedar Realty Trust was likewise reported to be mulling a full sale, or perhaps the disposition of a number of its properties. In July, Independence Realty Trust agreed to merge with Steadfast Apartment REIT, creating a company that holds 131 multifamily properties and about 38,000 units.
That same month, Kite Realty Group struck a $7.5B merger deal with Retail Properties of America, creating a portfolio of 185 open-air shopping centers. In March, Blackstone Group and Starwood Capital joined to buy Extended Stay America for $6B, and in April, Kimco Realty Corp. acquired Weingarten in a merger deal that created a $20.5B entity.
“As capital markets continue to improve and investment strategies evolve to account for the post-pandemic landscape, REITs should have the opportunity to address strategic needs through M&A activity," CBRE Capital Advisors Managing Principal James Scott told Bisnow in April.
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