Buying Premier Online Apartment Rentals Resource for Renters, Property Managers and Apartment Property Owners
Seeing a similar opportunity in Apartments.com as with previous acquisition LoopNet, CoStar Group has struck a deal to buy the online apartment marketplace
from Classified Ventures LLC for $585 million. The transaction is expected to close in the second quarter of 2014.
Apartments.com allows prospective apartment renters to search for apartments by location, rent level, and number of bedrooms and bathrooms and other criteria.
Created as a digital alternative to newspaper classified ads, Apartments.com was launched in May 1998 by Classified Ventures, a joint venture between several prominent newspaper publishers.
In addition to Apartments.com, the transaction includes ApartmentHomeLiving.com and RentalHomesPlus.com. RentalHomesPlus provides similar services for home, townhouse and condominium rentals, and ApartmentHomeLiving provides apartment search tools. In 2013, the three sites generated 114 million visits and an average of 7 million unique monthly visitors.
The agreement to buy Apartments.com follows CoStar’s 2012 acquisition of LoopNet, commercial real estate’s most heavily trafficked site. As with its successful integration of that major online marketplace, CoStar sees a similar opportunity to deliver richer content on multifamily properties from its comprehensive database and drive more traffic to Apartments.com.
"Apartments.com is one of the most widely recognized online apartment rental brands in the United States and is a leading advertising destination for professional management companies and building owners," said CoStar Group founder and CEO Andrew C. Florance.
"In much the same way LoopNet revolutionized how owners and brokers market the commercial real estate sectors of office, industrial and retail, Apartments.com has transformed the way owners and property managers market available units in their apartment buildings, moving them from the classified ads section of Classified Ventures owners' newspapers to more effective online advertising," added Florance.
CoStar Group's research organization, the largest in the commercial real estate industry, collects extensive details on hundreds of thousands of apartment buildings, including such as availabilities, rents, key contacts, comparable sales, photographs, building characteristics and other information.
CoStar believes its database offers the most comprehensive information source covering U.S. apartment buildings, with information on five times as many buildings as any other commercial real estate information provider.
With the acquisition of LoopNet, CoStar has become a leading provider of online marketplaces serving different real estate audiences, with its information on various commercial property types providing visitors with rich content highly valued by online consumers, helping to drive more traffic.
CoStar Group’s existing marketplaces include LoopNet, CityFeet and Showcase, which together attract over 5 million monthly unique visitors and are the number 1, 2 and 3 most trafficked sites for commercial real estate in the United States.
Other CoStar marketplaces target select niche markets. LandsofAmerica and LandAndFarm provide a marketplace for rural land and farm properties. BizBuySell and BizQuest are the leading marketplaces for small businesses for sale.
"We intend to draw on our deep experience with all of these marketplaces and leverage our management, technology, sales, and marketing expertise to make this acquisition a success," said Florance, adding that Apartments.com will give CoStar additional insight into the growing $2 trillion apartment rental industry.