UDR and Apollo have agreed to form a new long-term joint venture involving a portfolio of 19 apartment communities valued at approximately $2 billion.
The portfolio includes 7,059 apartment homes and will be owned through a newly established joint venture. Apollo-managed funds and affiliates will invest $1.34 billion of equity capital for an approximately two-thirds interest, while UDR will retain the remaining one-third stake and consolidate the joint venture.
UDR will continue operating and managing the properties and will receive an asset management fee for those services.
The transaction is expected to imply an approximately 6.0% capitalization rate. The portfolio has average revenue per apartment home of $2,058 and an average property age of 39 years.
Under the agreement, UDR will also retain an option to repurchase Apollo’s interest in the joint venture at an expected fixed return of between 7.00% and 7.50% for a finite period beginning on the fifth anniversary of the closing.
UDR said the partnership provides the company with access to a new source of equity capital while giving it greater flexibility to reposition its real estate portfolio and pursue new investments.
The company plans to deploy proceeds from the transaction into higher-growth assets, general corporate purposes, and debt reduction. UDR expects the partnership to be accretive to earnings while helping strengthen its balance sheet.
The joint venture also creates flexibility for UDR to move assets into and out of the partnership over time as the company evaluates capital allocation opportunities.
Apollo described the transaction as an example of its High Grade Capital Solutions strategy, which provides customized financing and capital structures for large companies.
The transaction is expected to close on October 29, 2026, subject to the execution of final documentation and customary closing conditions.
Citigroup Global Markets and Wells Fargo Securities served as structuring agents and financial advisors to UDR. Scotiabank served as financial advisor to Apollo.
As of September 30, 2026, UDR owned or held an ownership interest in 60,617 apartment homes, including 634 units under development.
KEY QUOTES:
“We are delighted for the opportunity to partner with Apollo, one of the world’s leading financial institutions. We believe that our best-in-class operating platform positions UDR as a natural fit with Apollo’s scaled permanent capital base. Access to equity capital is one of UDR’s strategic priorities. With this transaction, we believe we will be positioned to take advantage of compelling opportunities in the marketplace, while improving the quality of our wholly-owned portfolio and strengthening our balance sheet, all in an accretive manner. Our shareholders will benefit not only from the flexibility to move assets in and out of our newly established joint venture, but also from the ability to realize outsized value creation over time.”
Tom Toomey, Chairman, President And CEO Of UDR
“We are proud to serve as a capital partner to UDR. UDR is a recognized leader in the real estate industry with a track record of operational excellence and disciplined capital allocation. This transaction provides a cost-efficient capital solution tailored to UDR’s needs. Apollo’s investment further demonstrates the ability of our High Grade Capital Solutions business to partner with and support leading companies around the world.”
Jamshid Ehsani, Partner At Apollo
“UDR’s partnership with Apollo provides access to a new, low-cost permanent source of equity capital. We expect the transaction to be accretive to earnings and intend to deploy the proceeds into higher-growth assets and other general corporate purposes. Proceeds will also be utilized for debt reduction, strengthening the balance sheet at an opportune moment.”
Dave Bragg, Chief Financial Officer Of UDR
