Blackstone Fund Completes $570M Deal for Apartment Portfolio

A partnership of New York-based Phoenix Realty Group (PRG) and Blackstone Real Estate Partners VIII, Blackstone Group's $15.8B global real estate fund, has paid $570M for a multifamily portfolio consisting of 16 Class-B assets with 3,800 apartment units. The seller was two closed-end private equity funds managed by PRG, which sold the portfolio because its investment period had ended.

These multifamily properties are concentrated in some of the nation’s strongest multifamily markets, including Southern California—LA Metro, Inland Empire, Riverside, Orange County and San Diego—Denver and South Florida, the portfolio’s assets enjoy occupancy in the upper 90s, according to Blackstone. Pictured is one of the assets, Alvista Long Beach apartments.

PRG is a national multifamily owner, operator and fund manager focused on acquiring multifamily properties with value-add potential and bringing them up to institutional quality operating and management standards. The firm manages more than 11,000 apartment units and owns 130,000 units valued at $12B.

The Blackstone Real Estate Partners VII fund closed on Oct. 1 and has already committed 20% of funds to acquire significant real estate assets from General Electric Capital Corp and Strategic Hotels, a publicly traded REIT.

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