In an October 2013 article we noted how Blackstone Group had become the largest owner of rental homes in the U.S.!
In fact at the time, the worlds largest private equity firm had offered Wall Street’s first ‘rental-backed security’.
Well now Blackstone had made another large purchase of U.S. rental property (10,399 multifamily units) signaling that, in this company’s opinion, the answer to the rent versus buy debate for many potential homeowners is going to remain firmly in the rent camp.
The $2 billion purchase by Blackstone Group of multifamily properties across the United States was transacted with Greystar Real Estate Partners…
Blackstone Group LP agreed to buy 32 multifamily properties for about $2 billion from Greystar Real Estate Partners LLC as the private equity giant expands its push into the U.S. apartment market.
The buildings, with a total of 10,399 units, are spread throughout the country in states such as California, Florida, Washington and New York, Greystar said in a statement Tuesday. The Charleston, South Carolina-based company, the largest U.S. apartment manager, will continue to oversee the properties. Peter Rose, a Blackstone spokesman, declined to comment on the transaction.
Blackstone’s multifamily holdings are ballooning as values surge amid a shift away from homeownership and escalating rents. The Greystar purchase would give the world’s largest private equity firm control of 57,000 units, including the acquisition of more than 11,000 apartments at Manhattan’s Stuyvesant Town-Peter Cooper Village.
Multifamily buildings have led the five-year recovery in commercial real estate, with values exceeding the 2007 peak by about 34 percent, according to Moody’s Investors Service and Real Capital Analytics Inc. In big cities, prices are as much as 57 percent higher than prior records. (Source)
Blackstone Groups Big Bet On Rental Homes: 2013 InfographicGoogle+