EDENS to Buy AmREIT for $763 Million

At the Urban Land Institute’s Fall Meeting in New York City, Houston was declared the number one real estate market in the US. As revealed by ULI and PwC research, 2015 will be a big year for the Bayou City, yet, we don’t have to wait for next year to notice that big changes are already close at hand!

At the Urban Land Institute’s Fall Meeting in New York City, Houston was declared to be the nation’s top real estate market. The report from ULI and PricewaterhouseCoopers projects a big year for the Bayou City in 2015, and recent activity suggests that the prediction is right on the money.

Houston-based AmREIT Inc. announced Oct. 31 that it has entered a definitive agreement to be acquired by Edens Investment Trust for $763 million in cash, or $26.55 per share. The price represents a premium of nearly 40 percent over AmREIT’s closing stock price on July 9, 2014, according to a statement. This announcement comes only four months after AmREIT rejected an unsolicited proposal from Regency Centers, which offered $22 per share. The transaction is expected to close  in the first quarter of 2015 and is contingent on the approval of AmREIT’s stockholders.

“This is an outstanding outcome for our stockholders, who will receive in cash a premium value for their shares reflecting the irreplaceable characteristics of our portfolio of properties,” said Kerr Taylor, AmREIT’s chairman & CEO. “I am pleased with the leadership of our Board in authorizing and overseeing a very robust exploration of strategic alternatives consistent with our July announcement.”

In addition, AmREIT disclosed Nov. 4 in its third-quarter earnings report that it is planning on redeveloping two Galleria sites. Located at 1670 Post Oak, The Courtyard at Post Oak will be a 40-story, 350-unit high-rise multifamily tower. San Antonio-based Lynd Development will co-develop the $146 million project.

In a joint venture with Trammell Crow Co., AmREIT is planning to develop a $280 million office complex on the site of Inverness Townhomes. Located on a 2.9-acre parcel at the northwest corner of Post Oak Boulevard and Uptown Park Boulevard, the proposed project would consist of 591,000 square feet of office space and 19,000 square feet of retail space with structured parking.