UDR and Apollo form $2B apartment portfolio joint venture

UDR, Inc. (NYSE: UDR), a multifamily real estate investment trust, and Apollo (NYSE: APO) announced plans to form a joint venture involving a portfolio of 19 apartment communities totaling 7,059 homes, valued at approximately $2.0 billion, according to a press release.

Under the terms of the deal, Apollo-managed funds and affiliates will invest $1.34 billion in equity capital into the newly established joint venture, acquiring an approximate two-thirds interest. UDR will retain a one-third interest and continue to manage and operate the portfolio, earning an asset management fee.

The transaction is expected to imply a capitalization rate of approximately 6.0%, with average revenue per home of $2,058 and an average portfolio age of 39 years. UDR will retain an option to repurchase Apollo's interest at an expected 7.00–7.50% fixed return for a finite period beginning at the fifth anniversary of closing.

UDR Chief Financial Officer Dave Bragg said the transaction is expected to be accretive to earnings, with proceeds intended for deployment into higher-growth assets, general corporate purposes, and debt reduction.

Apollo Partner Jamshid Ehsani said the deal "provides a cost-efficient capital solution tailored to UDR's needs" and reflects Apollo's High Grade Capital Solutions business.

The transaction is expected to close on October 29, 2026, subject to documentation and customary closing conditions. Citigroup Global Markets Inc. and Wells Fargo Securities, LLC acted as structuring agents and financial advisors to UDR, while Scotiabank advised Apollo.

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