Purchased on behalf of the Greystar Growth and Income Fund, Monogram was sold at a share price of $12 per share, a cost unanimously approved by Monogram’s board of directors.
The purchase price, to be paid in cash, offers a premium of 22 percent to Monogram’s unaffected closing stock price on 3 July 2017.
The transaction is expected to close later in 2017, and is subject to Monogram shareholder approval. J.P. Morgan Chase Bank has already committed $2 billion in debt financing for Greystar.
Bob Faith, CEO of Greystar, said: “We are excited to add Monogram’s high quality assets in some of the best markets in the country.”
The $3 billion valuation accounts for Monogram’s joint ventures with PGGM and NPS.
The terms of the partnership with PGGM will be restructured, while the partnership with NPS is to be purchased by Greystar for approximately $500 million.
Faith added: “The collective strength and experience of our high-quality investment partners are second to none, and we look forward to completing this transaction and further expanding Greystar’s US multifamily platform.”
Greystar manages over 415,000 units in over 140 markets globally with an aggregate estimated value of $80 billion.
Mark Alfieri, CEO of Monogram, said: “The interest we received from this sophisticated group of investors demonstrates that our targeted focus on building our portfolio with high quality class-A assets in select core markets has been recognised and our stockholders and joint venture partners are rewarded with this successful outcome.”