Photographer: David Paul Morris/Bloomberg

Mid-America Nears $4 Billion Post Properties Deal, WSJ Says

Mid-America Apartment Communities Inc., a real-estate investment trust, is close to a deal to buy Post Properties Inc. for about $4 billion as demand for rental properties booms, The Wall Street Journal reported.

Post Properties shareholders will get 0.71 share of new MAA stock for each share in a deal that could be announced Monday, according to the newspaper’s website, which cited people familiar with the matter that it didn’t name.

Apartment managers have benefited from a recovery in the housing market as rising home prices have turned many would-be buyers into renters, the Journal said. At the same time, growth in rents has begun to slow, creating an incentive for mergers that reduce costs.

Post and MAA didn’t immediately return e-mails and phone calls seeking comment.

Post, valued at about $3.3 billion, has risen 5.2 percent this year to close at $62.22 in New York on Friday. MAA, with a market value of $7.7 billion, is up 12 percent for the year to $102.15. The deal would generate cost savings of about $20 million, according to the Journal.

Real estate is this year’s second-busiest sector for mergers and acquisitions globally, with more than $215 billion of transactions announced, the newspaper said, citing data from Dealogic.

MAA owns or has stakes in about 80,000 apartments in 15 states, according to its website. Post Properties owns more than 22,000 apartments.

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