By Chris Wack

Bluerock Residential Growth REIT Inc. shares were up 71% to $26.44 after the company said it is being bought out by affiliates of Blackstone Real Estate for $24.25 per share in an all-cash transaction valued at $3.6 billion.

The stock traded as high as $27.48 earlier in the session.

Under the terms of the agreement, Blackstone would buy 30 multifamily properties comprised of 11,000 units as well as a loan book secured by 24 multifamily assets.

The properties consist of high-quality garden-style assets with significant green space and resort-style amenities, built, on average, in 2000. The majority of the properties are located in Atlanta, Phoenix, Orlando, Fla., Denver and Austin, Texas.

Prior to the acquisition, the company separately intends to spin off its single-family rental business to its shareholders through the taxable distribution to shareholders of all of the outstanding shares of common stock of a newly formed real estate investment trust named Bluerock Homes Trust Inc., which will be externally managed by an affiliate of Bluerock Real Estate.

Completion of the acquisition, which is currently expected to occur in the second quarter of 2022, is contingent upon consummation of the spinoff. The acquisition isn't contingent on receipt of financing by Blackstone. Most members of Bluerock senior management, along with certain entities related to them, have agreed to retain their interests in the company's operating partnership.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

12-20-21 1251ET