Blackstone To Pay $3.7B For REIT In Latest Bet On Housing

Blackstone REIT has inked a $3.7B deal to acquire Resource REIT for cash, including the assumption of debt. Resource is a nontraded REIT that owns 42 U.S. apartment communities totaling over 12,600 units.

The acquisition values Resource REIT at $14.75 per share, which Resource says represents a premium of 63% to its most recently published net asset value of $9.06 per share, as determined in January 2021 by the REIT’s board of directors.

Resource's portfolio includes garden-style assets in 13 states, including Arizona, Colorado, Florida, Georgia and Texas.

The deal is expected to close in the second quarter of this year, subject to approval by the REIT's common stockholders but not contingent on financing.

BREIT, which is a real estate arm of investment giant Blackstone, has been increasing its residential holdings in recent quarters. Last July, BREIT acquired affordable housing assets from American International Group for about $5.1B in an all-cash transaction.

In June, BREIT agreed to acquire Chicago-based Home Partners of America, a specialist in owning and managing single-family rental houses, with more than 17,000 properties in the United States. The investor paid $6B for Home Partners.

The residential acquisitions are part of Blackstone's shift in focus in its real estate holdings toward assets that the investor sees as better bets in the current climate.

"In real estate... nearly 70% of our portfolio is concentrated in the fast-growing logistics, rental housing and life sciences office sectors, compared to less than 10% a decade ago," Blackstone Chairman and CEO Steve Schwarzman said in October during the company's Q3 2021 investor call.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

The Bridge-To-Bridge Bet Is Holding Off CRE's 'Day Of Reckoning' — For Now

Augmentation, Not Replacement: How AI Platforms Are Streamlining Front Desk Teams

Lawmakers Punt On Stripping Approvals From 15 Projects In Data Center Alley

Success Of Top-Tier Malls Masks Enduring Distress In Sector's Underbelly

HUD Launches Investigation Into Wells Fargo's Efforts To Support Black Homeownership

Delaware Statutory Trust Fundraising Jumps 27% From 2025

Hines Spends $170.5M On Mixed-Use Portfolio In Dallas' Bishop Arts District

Bank OZK Shares Drop After Citi Flags $915M Mortgage Concern

Soaring Yields Strand REITs In M&A No-Man's-Land

How UK Investment Giant L&G Plans To Grow Its U.S. Multifamily Holdings

Properties Owned By REIT Accused Of Fraud To Be Auctioned Off

LS Power Raises $6B To Capitalize On Data Center Power Demand