Philadelphia REIT Assembles 44,000-Unit Platform With Midwest Addition
Independence Realty Trust and Centerspace announced an all-stock merger valued at $8.1 billion that will combine their portfolios into a 44,354-unit multifamily REIT. The transaction is expected to close by the end of the fourth quarter. IRT will acquire Centerspace’s nearly 10,500 units in Colorado, Minnesota, Montana, Nebraska, North Dakota, and Utah. Centerspace had already announced plans in June to sell 12 communities for approximately $240 million to $245 million, including exits from Bismarck, North Dakota, and Rapid City, South Dakota.
The combined company will own 163 communities across 17 states, with 58 percent of net operating income from Sun Belt markets, 27 percent from the Midwest, and 15 percent from the Mountain West. IRT ranked 29th on the National Multifamily Housing Council’s top 50 owners this year with 34,421 units. The companies expect approximately $24 million in annualized synergies from the merger. IRT plans to roll out its Wi-Fi initiative across Centerspace’s properties.
The merged entity will retain the Independence Realty Trust name and Philadelphia headquarters, with CEO Scott Schaeffer and CFO James Sebra leading the combined platform. The board will expand to 11 members, with nine from IRT and two from Centerspace. RBC Capital Markets and Rothschild & Co. advised IRT, while BMO Capital Markets advised Centerspace. IRT’s focus remains on non-gateway markets with historically above-average net operating income growth and lower volatility compared to coastal gateway cities.
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