UDR, Apollo plan $2 billion apartment joint venture
UDR•UDR and Apollo plan a $2 billion joint venture covering 19 apartment communities with 7,059 homes. Apollo will invest $1.34 billion for an approximately two-thirds stake, while UDR will retain one-third and manage the portfolio.
1. Joint venture terms
The venture implies a capitalization rate of approximately 6%. UDR will consolidate the venture and manage the portfolio for an asset management fee; it also has an option to repurchase Apollo’s stake at an expected 7%-7.5% fixed return for a finite period beginning on the closing’s fifth anniversary.
2. Expected closing
Closing is expected October 29, 2026. UDR plans to use proceeds for higher-growth assets, debt reduction and general corporate purposes.
