UDR to Form $2.0 Billion Apartment Joint Venture With Apollo

The Tip Desk · October 21, 2026 · 2 min read

Apollo-managed funds will invest $1.34 billion for an approximate two-thirds stake in 19 communities totaling 7,059 homes, with UDR retaining a one-third interest and continuing to manage the portfolio.

UDR, Inc. (UDR) and Apollo (APO) announced their intention to form a long-term joint venture involving a diversified portfolio of 19 apartment communities totaling 7,059 homes and valued at approximately $2.0 billion.

Under the terms, Apollo-managed funds and affiliates will invest $1.34 billion of equity capital into a newly established joint venture, acquiring an approximate two-thirds interest. UDR will retain a one-third interest and consolidate the venture, and will continue to operate and manage the portfolio for an asset management fee. The transaction, once completed, is expected to imply a capitalization rate of approximately 6.0% for a portfolio with average revenue per home of $2,058 and an age of 39 years. UDR will also retain an option to repurchase Apollo’s interest at an expected 7.00-7.50% fixed return for a finite period starting at the fifth anniversary of closing.

The Denver-based multifamily real estate investment trust said access to equity capital is one of its strategic priorities. Chairman, President, and CEO Tom Toomey said the company believes its operating platform is a natural fit with Apollo’s scaled permanent capital base and that the transaction is expected to be accretive, improve the quality of the wholly-owned portfolio, and strengthen the balance sheet. Chief Financial Officer Dave Bragg said UDR expects the transaction to be accretive to earnings and intends to deploy proceeds into higher-growth assets and other general corporate purposes, including debt reduction.

Apollo Partner Jamshid Ehsani said the firm is proud to serve as a capital partner to UDR and that the investment demonstrates the ability of its High Grade Capital Solutions business to partner with leading companies. Apollo, a global alternative asset manager that reported approximately $1.05 trillion of assets under management as of June 30, 2026, said the deal provides a cost-efficient capital solution tailored to UDR’s needs.

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

UDR separately raised full-year 2026 guidance ranges for Net Income and FFO as Adjusted per diluted share and provided preliminary third-quarter results. The company said Net Income, FFO and FFOA per share for all 2026 periods and guidance are unaffected by the Apollo transaction. Same-store growth metrics have been adjusted to exclude the 19 communities that comprise the joint venture.

As of March 31, 2026, UDR owned or had an ownership position in 59,782 apartment homes, including 300 under development.