(Bloomberg) -- One of Europe’s largest private equity firms, EQT AB, which has ties to the Wallenberg family, has agreed to buy Redwood Capital Group, a Chicago-based owner of apartment communities.

The Redwood Capital team will combine with EQT Exeter, Stockholm-based EQT’s real estate arm, according to a person familiar with the deal, who asked not to be named because it hasn’t been made public. Closing is expected in the third quarter, the person said. 

A spokesperson for EQT declined to comment. A Redwood representative didn’t respond to a request for comment. 

Redwood owns about 30 US rental properties, in states including Arizona, Florida, Georgia and Texas, according to its website. The closely held company has more than $1.7 billion of assets under management. 

Demand for apartment living is high as soaring US home prices and rising mortgage rates force many people to remain renters. Property investors such as Blackstone Inc. have been scooping up portfolios across the country in a bet on continued rent growth.

EQT Exeter has more than 1,800 properties worldwide. It invests in everything from warehouses to offices, life sciences centers and housing. 

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