Blackstone to offer securities backed by U.S. rentals

New York /
Oct.October 28, 2013 02:35 PM

The Blackstone Group’s single-family rental-backed offering is poised to become the first of its kind on Wall Street.

The offering, to be called Invitation Homes 2013-SFR1 and shopped by Deutsche Bank, allows investors to buy into securities backed by more than $500 million mortgages on single-family homes the company acquired and rented out since 2007, a portfolio that includes almost 40,000 homes.

“What we tried to do was not buy assets all over the country in some kind of scattershot way,” Stephen Schwarzman, co-founder, chairman and CEO of Blackstone said in a statement cited by CoStar Group. “What we tried to do was limit our purchases to certain markets where we thought that the recovery would be quite good. And if the cycle works the way we think, this should be a good thing for everybody involved.”

Blackstone was one of the first major property buyers to borrow against its holdings, which are expansive. Some of those note holders will now be able to cash out on Blackstone’s strategy, thanks to the securities offering.

News of the possible offering comes as Blackstone is reportedly shopping out the office portion of the tower at 717 Fifth Avenue, which is made up of three office condominiums. The building comes with an unusual arrangement in which the property owners pay taxes based on how much space they own rather than the value of that space. [CoStar]Julie Strickland


Related Articles

arrow_forward_ios
(Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Tri-state rents are up and down — at the same time
Tri-state rents are up and down — at the same time
New York Community Bank CEO Thomas Cangemi
NYCB slashes 10% of staff as resi mortgages slump
NYCB slashes 10% of staff as resi mortgages slump
A photo illustration of Blackstone's Jon Gray (Getty, Blackstone)
Blackstone ramps up tenant evictions
Blackstone ramps up tenant evictions
Moody’s Analytics' Thomas LaSalvia
Average American tenant is rent-burdened
Average American tenant is rent-burdened
Coxsackie mayor Mark Evans (Village of Coxsackie, Getty)
Another Hudson Valley village halts short-term rentals
Another Hudson Valley village halts short-term rentals
Jonathan Gray
Real estate problems drag down Blackstone’s profits
Real estate problems drag down Blackstone’s profits
From left: Blackstone's Nadeem Meghji and Jon Gray (Getty, Blackstone)
University of California commits $500M more to BREIT
University of California commits $500M more to BREIT
NYCHA interim CEO Lisa Bova-Hiatt (NYC.gov, Getty)
“Folks got misinformed”: Why NYCHA tenants stopped paying rent
“Folks got misinformed”: Why NYCHA tenants stopped paying rent
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...