Blackstone Group to dial back rental buying binge

Acquisition pace slows by 70%; "institutional wave has passed"

TRD New York /
Mar.March 14, 2014 08:05 AM

Blackstone Group is preparing to hit the brakes on buying homes to rent as its acquisition pace has already plummeted by 70 percent from the private equity firm’s peak last year.

The firm had been on a tear, snatching up enough properties to render it the largest single-family home landlord in the U.S. — ahead of American Homes 4 Rent and Colony American Homes. Blackstone spent $8 billion to purchase 43,000 houses across 14 cities over the last two years. At one point last year, it was investing at least $100 million per week. But the sky-high prices have led Blackstone to take a step back.

“The institutional wave has passed,” Jonathan Gray, Blackstone’s global chief, told Bloomberg News. “It’s at a much lower level than it was 12 or 24 months ago.”

Gray said last month the firm plans to invest more in international markets such as China, India and Brazil, as previously reported. [Bloomberg News]Mark Maurer

Related Article

65 East 55th Street and EQ Office CEO Lisa Picard (Credit: Park Avenue Tower and VTS)

Blackstone looks to sell Park Ave Tower for more than $800M

(Illustration by Tim Peacock)

The e-commerce industrial revolution

Blackstone president Jonathan Gray and 145-07 156th Street in Queens (Credit: Getty Images and Google Maps)

Fresh off $18B industrial buy, Blackstone in talks for collection of warehouses near JFK

Blackstone is already selling pieces of the $18B GLP industrial portfolio

Blackstone’s Q2 earnings decline as real estate segment tumbles

Blackstone CEO Jonathan Gray and Stuy Town (Credit: Getty Images and Wikipedia)

Rent-regulation laws prompt Blackstone to halt improvements at Stuy Town

Blackstone-backed mortgage lender Stearns files for bankruptcy

266 East 78th Street

Here’s what the $10M-$20M NYC investment sales market looked like last week