“I am extremely proud of what this organization has achieved since the REIT's 2013 initial public offering,” which includes more than doubling Milestone's enterprise value, “more than tripling our equity market capitalization and generating total annual compound returns for our investors in excess of 28%,” says Robert P. Landin, CEO of Milestone. “This compelling all-cash transaction reflects an attractive value for our unitholders and will position Milestone and its employees for continued growth with an experienced, reputable and very capable strategic owner.”

Goodmans LLP and Vinson & Elkins LLP are acting as legal counsel to Milestone. BMO Capital Markets is acting as financial advisor to Milestone and has provided a fairness opinion to the special committee of Milestone's board, while National Bank Financial has provided the special committee with an independent fairness opinion. Stikeman Elliott LLP and Kirkland & Ellis LLP are acting as legal counsel to Starwood. The deal is expected to close early in the second quarter.

Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.

DALLAS—Milestone Apartments Real Estate Investment Trust, which in 2015 partnered with Starwood Capital Group to acquire Landmark Apartment Trust Inc., now will be acquired itself by Starwood Capital. The apartment REIT is being taken private for $1.3 billion in cash, in a deal with an enterprise value of $2.85 billion including the assumption of debt.

The deal will add 78 multifamily garden-style residential properties, comprising 24,061 apartment units across 16 major metropolitan markets throughout the Southeast and Southwest, to Starwood Capital's portfolio. The Greenwich, CT-based asset management firm already controls 67,000 units across the Sunbelt.

The acquisition implies an average price per apartment unit of approximately $120,000, which compared to the book value of approximately US$109,500 per apartment unit. Milestone is is the largest REIT listed on the Toronto Stock Exchange that's focused solely on the United States multifamily sector.

Shareholders in Milestone will receive $16.15 per unit. This represents a premium of approximately 16% to the 30-day volume weighted average price per unit of $13.93 as of the close of trading on Wednesday, and 8.6% above Wednesday's closing price of $14.87.

“I am extremely proud of what this organization has achieved since the REIT's 2013 initial public offering,” which includes more than doubling Milestone's enterprise value, “more than tripling our equity market capitalization and generating total annual compound returns for our investors in excess of 28%,” says Robert P. Landin, CEO of Milestone. “This compelling all-cash transaction reflects an attractive value for our unitholders and will position Milestone and its employees for continued growth with an experienced, reputable and very capable strategic owner.”

Goodmans LLP and Vinson & Elkins LLP are acting as legal counsel to Milestone. BMO Capital Markets is acting as financial advisor to Milestone and has provided a fairness opinion to the special committee of Milestone's board, while National Bank Financial has provided the special committee with an independent fairness opinion. Stikeman Elliott LLP and Kirkland & Ellis LLP are acting as legal counsel to Starwood. The deal is expected to close early in the second quarter.

Several economic factors have resulted in net positives for the multifamily sector and prices in core markets are at an all-time high. But just how long can the market continue on this trajectory? Join us at RealShare Apartments East on Feb. 28 and March 1 for insights on succeeding in the right markets as well as navigating and finding opportunities in the more challenging ones. Learn more.