Apollo will invest approximately $1.34 billion of equity capital for a two-thirds interest in a UDR joint venture.
The portfolio totals 7,059 units across 19 properties and is valued at approximately $2.0 billion. UDR will continue to operate and manage the portfolio, earning an asset management fee.
Tom Toomey, UDR's chairman, president and CEO, said access to equity capital is one of UDR's strategic priorities.
Apollo partner Jamshid Ehsani said the transaction provides a cost-efficient capital solution tailored to UDR's needs. 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.