CoStar Group announced this week that it plans to acquire ForRent, a division of Dominion Enterprises, pursuant to a definitive agreement for $350 million in cash and $35 million in CoStar Group stock.
“We are delighted to welcome the ForRent team and their family of sites to the Apartments.com network,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “We believe this is a beneficial combination for all of our constituents.”
Florance explained that now, prospective renters will have access to the most complete and accurate inventory of apartment availabilities with more than one million rentals spanning apartments, homes, and condominiums.
“Advertisers will benefit from our unmatched leads-to-lease conversion ratio; ForRent advertisers’ properties will be featured on Apartments.com after the transaction closes, increasing their exposure by approximately 500%,” Florance explained. “For the investors and lenders relying on CoStar for multifamily data and analytics, we expect the addition of properties and data from ForRent will further strengthen our information offering.”
Some 110 million renters in the U.S. collectively spend just under half a trillion dollars a year on rent, representing one of the fastest growing consumer market segments. “Our commitment to the multifamily industry has been resolute, and evidenced by our investment in marketing, technology and the delivery of original content to create the premier marketplace for renting an apartment in the United States,” said Florance.
ForRent.com will remain a distinct, complementary brand to Apartments.com; by offering multiple distinct website marketing solutions, property managers and owners will have more exposure for their listings.
CoStar expects to fully integrate the underlying technology that supports its entire multifamily suite of services by mid-2018, thereby efficiently leveraging a common research and listing platform.
“We intend to enhance ForRent.com and its related sites as we did with Apartments.com and ApartmentFinder,” said Florance. “Our research, technology and marketing initiatives have created the most-visited apartment listing site, which in turn delivers unprecedented levels of leads, leases and value to our advertising customers. We look forward to delivering that same value to all renters and advertisers on the ForRent network of sites.”
The transaction is expected to close in the fourth quarter of 2017 subject to customary closing conditions.
Read the full press release HERE.