BSR REIT has agreed to sell a portfolio of nine multi-family properties in Texas to AvalonBay Communities for US$618.5 million.

The proposed divestment includes six properties in the Dallas region and three in the Austin metropolitan area. The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions.

“This is a transformative and strategic transaction for BSR with a well-respected buyer,” said Dan Oberste, CEO of Toronto-based BSR. “Once again, the REIT has executed a transaction substantiating the [International Financial Reporting Standards] carrying value of a cross section of BSR’s stabilized assets, while realizing an approximate US$111,000,000 value lift relative to the REIT’s original acquisition price of these assets. Upon completion of the transaction, the REIT will have substantial dry powder to redeploy into properties in our core Texas Triangle investment markets that could offer higher returns for unitholders.”

The properties’ sale prices range from a high of US$136 million for a two-building site in Austin to a low of US$46.5 million for a Dallas asset. The sale aligns with BSR’s strategic plan to optimize its portfolio and enhance long-term value, said the REIT

“This transaction will double the size of our portfolio in our Texas expansion regions at a time when assets can be acquired at a compelling basis relative to today’s construction costs, with assets that are strongly aligned with our portfolio allocation priorities,” said Matthew Birenbaum, AvalonBay’s chief investment officer. “The assets are suburban garden communities with an average age of 11 years, providing a strong complement to our current and planned development activity with rents at a more affordable price point, and allowing for increased operating synergies as we increase our scale in these high-growth regions.”

BSR owns and manages multi-family rental properties in high-growth U.S. Sunbelt markets.

AvalonBay, headquartered in Arlington, Va., focuses on developing, redeveloping, acquiring, and managing multi-residential rental communities.

Pictured: Austin-area multi-family slated to be sold to AvalonBay as part of a portfolio sale.

Photo: Cielothehome.com