Dive Brief:
- AvalonBay Communities and Equity Residential announced that Vivmark Residential is the name for the combined company created through their “merger of equals,” according to a July 30 press release from AVB. The combination is set to be one of the biggest-ever in the apartment REIT sector.
- Vivmark Residential will have a pro forma equity market capitalization of about $53 billion and an enterprise value of roughly $71 billion, per the release — slightly higher than previously reported. The combined firm will own more than 180,000 rental apartments with another 10,000-plus units under construction.
- VMRK is expected to be Vivmark’s New York Stock Exchange ticker symbol, according to the release. Until the combination is finalized, Chicago-based Equity Residential’s shares will continue to be listed under EQR, and Arlington, Virginia-headquartered AvalonBay will remain listed under AVB.
Dive Insight:
The name “Vivmark” is based on two “aspirational” ideas that embody what the new company is built to deliver, according to the release. Viv, from the Latin “vivere,” means “to live fully,” and is the root of “vivid” and “vitality,” while “mark” is a “symbol that reflects quality, distinction, and lasting impact.”
Benjamin Schall, AvalonBay CEO and incoming CEO of Vivmark Residential, said in the release that the name reflects “a company determined to set a new standard for the experience of home.”
“Vivmark Residential is built from the exceptional foundations that AvalonBay and Equity Residential have each spent more than 30 years establishing as trusted leaders,” Schall said. “With the combined scale, capabilities, and talent of both organizations, we have a rare opportunity to redefine what rental housing can be.”
Indeed, with more than 180,000 rental apartments, Vivmark Residential would have ranked No. 1 on the most recent National Multifamily Housing Council list of Top 50 owners and knocked Greystar to No. 2.
Vivmark has not yet announced its complete leadership team, but it is expected to include leaders from both REITs. Equity Residential CEO Mark Parrell will step down after 30 years at the company. The merger remains subject to satisfaction of typical closing conditions.
Additional brand elements such as Vivmark’s logo, typography and visual identity will be revealed in the coming weeks, per the release. The combination and new name will not result in community name changes.
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