# Apollo-Managed Funds and Affiliates Plan $1.34 Billion UDR Venture Stake

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/37181
Published: 2026-10-21T23:45:16.000Z
Updated: 2026-10-21T23:45:16.000Z
Section: Business

> The proposed $2 billion portfolio spans 19 communities and 7,059 homes; UDR would retain one-third ownership and manage the properties.

UDR Inc. and Apollo-managed funds and affiliates plan to form a venture for 19 apartment communities valued at about $2 billion, with the Apollo side investing $1.34 billion for an approximately two-thirds stake.

The portfolio includes 7,059 homes with an average age of 39 years. UDR, a multifamily real estate investment trust, would keep a one-third interest, consolidate the venture and continue managing and operating the properties for an asset management fee.

The transaction is expected to close Oct. 29, subject to transaction documents and customary closing conditions. Once completed, it is expected to imply a capitalization rate of about 6.0%.

UDR would have an option to repurchase Apollo’s interest at an expected fixed return of 7.00% to 7.50%. The option would be available for a finite period beginning on the fifth anniversary of closing.

“UDR’s partnership with Apollo provides access to a new, low-cost permanent source of equity capital,” said Dave Bragg, UDR’s chief financial officer. Bragg said UDR expects the transaction to be accretive to earnings and plans to use the proceeds for higher-growth assets, general corporate purposes and debt reduction.