The Real Deal New York

Blackstone buys another 10,000 rental apartments

Fund manager dishes out $2B for Greystar portfolio

December 08, 2015 06:05PM

Faith Gray

From left: Greystar’s founder Bob Faith and Blackstone’s head of real estate Jonathan Gray

The Blackstone Group is buying 32 multifamily buildings from Greystar Real Estate Partners for $2 billion, doubling down on its bet on the U.S. rental market.

The portfolio includes 10,399 apartment units across major metropolitan areas, including Los Angeles, South Florida, San Francisco and New York.

Greystar, based in South Carolina, owns about 20 properties in Manhattan, Brooklyn and Northern New Jersey, but it’s not immediately clear which buildings Jonathan Grey’s real estate juggernaut has acquired.

Greystar will continue managing the properties.

Blackstone has been one of the most active buyers of multifamily buildings this year. The Manhattan-based firm is betting that declining homeownership, driven in part by demographic shifts and stagnant incomes, will increase demand for rental apartments.

In October, the firm bought Stuyvesant Town-Peter Cooper Village in partnership with Ivanhoe Cambridge for $5.3 billion. Earlier this year, it paid $700 million for the Caiola family’s portfolio of Manhattan rental buildings. [Bloomberg]Konrad Putzier