AvalonBay Communities Inc. and Equity Residential (EQR) are considering a potential combination that could reshape the US apartment market, Bloomberg News reported, citing sources familiar with the matter. The two REITs, which are among the biggest apartment developers in the U.S., have held exploratory talks over what would be one of the largest real estate deals ever.
Between them, AvalonBay and EQR control about 185,000 apartments across 600-plus properties, reported Bloomberg. Each company has a market capitalization of about $25 billion.
A merger of AvalonBay and EQR would have broad implications for the U.S. housing market as affordability has become a top political and economic issue, according to Bloomberg. Given the size and reach of the companies, a deal would also likely draw heavy antitrust scrutiny. Deliberations are at a preliminary stage and there’s no guarantee that they will lead to a transaction, the sources told Bloomberg.
Pictured: EQR’s Murray Hill Tower Apartments in New York City.
The post Report: AvalonBay, Equity Residential in Talks for Possible Merger appeared first on Connect CRE.
​Â