UDR, Apollo Form $2 Billion Apartment Venture
Tenants in the 7,059 affected homes will see no changes to property management under the new ownership agreement.
Updated on Oct. 21, 2026 in Apartments
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UDR and Apollo have launched a $2 billion joint venture involving a portfolio of 19 apartment communities. This transaction, which includes 7,059 homes across the United States, gives Apollo a majority stake while UDR remains the property manager.
Why it matters
This deal shifts majority ownership of over 7,000 apartment units to new institutional investors while keeping existing management in place. The long-term structure provides a potential window for UDR to buy back the interest in five years.
The joint venture covers 7,059 homes across 19 communities with an average age of 39 years. Apollo acquired a two-thirds interest in the portfolio, which carries a total valuation of $2 billion and an implied capitalization rate of approximately 6 percent.
The players
UDR
A real estate investment trust that owns, operates, and manages apartment communities for thousands of residents.
Apollo
An alternative asset manager that invests in real estate equity and corporate debt.
The details
UDR is contributing its existing apartment portfolio to the newly formed entity while Apollo provides $1.34 billion in equity capital to secure its two-thirds ownership stake. UDR retains a one-third interest and will continue to perform all management duties for the properties. Beginning on the fifth anniversary of the closing, UDR holds an option to repurchase the interest at an expected fixed return of 7 percent to 7.5 percent.
Timeline
October 21, 2026
Fifth anniversary of closing
Money Landscape
This joint venture follows a pattern established by the REIT regulatory structure where firms use majority-stake sales to free up equity capital. It marks a shift for UDR as it transitions from full ownership to a minority-stake management role for these specific properties.
While ownership of these buildings is changing, day-to-day operations and property management will remain under UDR. Renters in these 7,059 units should continue to follow existing lease agreements and contact their current building management office for all service needs.
The takeaway
Large-scale real estate transactions between institutional investors often change who collects the rent, but rarely impact the operational terms for current tenants. Renters should maintain copies of their current lease as a reference point for any potential management updates.
What happens next
UDR may exercise its option to repurchase the majority interest beginning on the fifth anniversary of the deal closing.
Further reading
For more on the current state of the rental market, visit Apartments.
Live Poll
Do you believe large corporate joint ventures generally improve the management of rental properties?
