AvalonBay, Equity Residential Merge to Form $69B Multifamily Giant
Following the merger, Equity Residential CEO Mark Parrell will retire
By Isabelle Durso May 21, 2026 9:03 am
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AvalonBay and Equity Residential, two of the largest multifamily owners in the U.S., have merged to form one of the country’s largest real estate companies with a total enterprise value of roughly $69 billion, the companies announced Thursday.
Once the all-stock merger is complete, the multifamily behemoth will own more than 180,000 rental apartments across more than 600 communities in the U.S., plus another 10,800 apartments and $4.4 billion under construction across 32 communities, including more than 50 percent with an affordable or mixed-income component, according to the release.
The combined entity — which will operate under a new name that’s yet to be announced — will have a $4.2 billion development rights pipeline, with expectations to increase development starts annually.
The transaction is expected to close in the second half of 2026.
“This combination creates a new and fundamentally stronger company with differentiated capabilities that will drive structurally superior cash flow generation, earnings and dividend growth, and value for shareholders,” AvalonBay CEO and President Benjamin Schall said in a statement.
“As one of the country’s leading developers of new apartments across our regions, we will directly increase the supply of both market rate and affordable housing,” Schall added. “Drawing on the foundational strengths and industry-leading teams across both of our organizations, our ambition is to redefine leadership in rental housing for the benefit of residents, associates, and shareholders.”
As part of the merger, there will be some leadership adjustments. Stephen Sterrett, currently lead independent trustee of Equity, will serve as chairman. David Neithercut, currently non-executive chair of Equity, and Tim Naughton, currently non-executive chairman of AvalonBay, will serve as trustees of the combined company.
Meanwhile, Schall will serve as president, CEO and trustee of the combined company, while Mark Parrell, CEO of Equity for eight years, will retire following the transaction’s close.
“The combined company’s investors will benefit from accelerated growth from increased investment in operational innovation; a larger, self-funded development platform; and the variety of other value creation opportunities that world-class scale affords,” Parrell said in a statement.
The full new management team for the entity will be announced prior to closing and will include “substantial representation from both companies,” the release said. The combined company will have a dual headquarters in Arlington, Va., and Chicago.
Upon the deal’s closing, AvalonBay shareholders will own approximately 51.2 percent of the combined company, while Equity shareholders will own approximately 48.8 percent on a fully diluted basis.
Isabelle Durso can be reached at idurso@commercialobserver.com.
