America First Apartment Investors Inc. (NASDAQ: APRO) said on Monday that it agreed to be acquired by a privately held buyout firm for about $532 million in cash, including debt.

The real estate investment trust said it will accept the bid from Sentinel Omaha LLC, an affiliate of Sentinel Real Estate Corp, for $25.30 per share, representing a 12 percent premium over the company's Friday closing price. America first said its total debt was about $250 million.

America First stock jumped $2.45 or 10.9 percent to reach $24.99 at the end of regular trading hours on the Nasdaq Stock Market.

We know their markets as we have owned properties in all but two of the 21 markets in which they operate, said David Weiner, Vice Chairman of Sentinel Real Estate.

Also, by integrating their approximately 7000 units with the approximately 50,000 units we currently manage, we expect to see significant economies of scale.

The board of America First unanimously approved the merger. It also said it will pay its regular quarterly dividend of 27 cents per share on July 31 to shareholders of record June 29.

The deal is expected to close in the late third quarter.