AvalonBay Communities and Equity Residential on May 20 announced they would join forces in an all-stock merger to create a multifamily real estate titan with an enterprise value approaching $69 billion.
The merger would create a much stronger organization that would generate about $2 billion annually in cash flow to be deployed across multiple growth channels, the companies said in an investor presentation.
The new entity would leverage artificial intelligence, technology, and automation across its diverse multifamily portfolio of more than 180,000 units to centralize services and generate increased net operating income at the asset and neighborhood levels.
AvalonBay operates 98,271 apartments in 11 states, while Equity Residential owns and manages the keys to 85,211 apartment doors primarily in major coastal markets and large metropolitan cities, including Atlanta, Denver, and Austin, Texas. Approximately 7,200 doors are affordable housing units….