Multifamily giant Equity Residential is buying eight apartment complexes around Atlanta for $535 million in a deal that shows the strength of the area's affluent northern suburbs.
The Chicago-based real estate investment trust has agreed to purchase the portfolio with 2,064 units as part of its “significant expansion in targeted suburban submarkets” around Atlanta, the REIT said in an investor presentation.
The seller is Blackstone, according to CoStar data. The deal that Blackstone called a "terrific outcome" is expected to close by the end of June.
“This transaction represents a terrific outcome for our investors and demonstrates the strong institutional demand for well-located, quality assets," a Blackstone spokesperson said in an email to CoStar News. "Rental housing remains one of our highest-conviction themes, and we continue to see strong fundamentals in attractive markets.”
Representatives for Equity didn't immediately respond to an email request for comment.
The properties are Cortland Lex, Summit Crossing I, Summit Crossing II, The Drexel, Reserve at Summit Crossing, The Falls at Forsyth, The Lofts at Perimeter Center and The Heights at Perimeter Center, according to the investor presentation.
The average age of the properties is 16 years. The oldest property in the portfolio, Cortland Lex, was built in 1995 and renovated in 2015. The other properties were built between 2007 and 2018 and comprise mostly one- and two-bedroom units.
"There's a lot of interest in buying" multifamily product across the Sun Belt market, said Alec Brackenridge, Equity's chief investment officer, in the REIT's first-quarter earnings call in April. "Buying in at a good basis in markets that have robust, likely future job growth is something that's attractive to us and others, and we anticipate being active."
In the investor presentation, Equity touted Atlanta's diverse economy and large job base, business-friendly environment and growing tech center, relatively low cost of living, healthy net migration, and a significant decline in apartments being built heading into 2026.
The acquisition is the latest move by the REIT as it continues its push into Sun Belt markets. Equity has been active in Atlanta recently and bought six apartment properties in the region in the second half of last year.
"People are buying into an environment where they think that the dramatically decreasing supply will offset some uncertainty on the job side," Brackenridge added in the call, saying "multifamily remains a favored asset class, and we expect to see that continue."
Equity's presence in the Atlanta area already includes 22 properties totaling 6,420 units, with 83% of the portfolio being in the suburbs, according to the presentation. The REIT has more than 84,000 units across the nation.