- Centerspace is exploring strategic options, including a potential sale, as it fields acquisition interest, though no final decision has been made.
- The REIT’s stock jumped up to 14% on the news, marking its biggest intraday gain in over two years and giving the company a market cap of $1.1B.
- Centerspace’s portfolio spans 13K units in a mix of major and secondary markets, including Minneapolis, Denver, and several smaller cities in the Western US.
Early Talks Underway
Multifamily landlord Centerspace is weighing a potential sale as it explores strategic alternatives, reports Bloomberg. The company has hired financial advisers to help evaluate its options, including offers from interested buyers. No final decision has been made, and Centerspace could still choose to remain independent.
Stock Market Response
Following the news, Centerspace shares surged as much as 14%—the biggest one-day jump in more than two years. By mid-afternoon Tuesday, the stock traded at $66.01, valuing the company at around $1.1B. The rally comes after a 9% drop in share price earlier in the year.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
A Footprint In Overlooked Markets
Centerspace owns about 13K apartment units across a mix of major and smaller Western US markets. Its properties include buildings in cities like Denver, Salt Lake City, and Minneapolis, as well as Grand Forks and Billings. This diverse footprint offers exposure to markets often overlooked by institutional investors.
Why It Matters
Multifamily buyers are increasingly eyeing stable, less competitive markets amid rising costs and shifting investor sentiment. Centerspace’s mix of urban and regional assets could be appealing to firms seeking steady, long-term returns. A potential sale may indicate broader consolidation ahead in the midsize REIT sector.
