Blackstone president still sees opportunity in US real estate

Firm’s core-plus portfolio grew 36% last year

New York /
Oct.October 19, 2017 12:00 PM

The U.S. real estate market may have slowed down, but Blackstone Group president Tony James still sees plenty of opportunities for profit.

“Real estate is a gargantuan market,” he said during the company’s quarterly earnings media call Thursday. “There are always undermanaged assets.”

Blackstone has been investing heavily in logistics real estate, hoping to capitalize in the rise of online retail, and James indicated more acquisitions are possible. “There’s just not near enough of it in any metropolitan area,” he said. He also pointed to senior living, mixed-use neighborhoods and markets that lack housing, such as Seattle and Northern California, as investment opportunities.

Blackstone’s real estate assets under management grew to $111.3 billion in the second quarter, up 9 percent from $101.9 billion a year ago. Its core-plus portfolio, which includes Stuyvesant Town-Peter Cooper Village, grew 36 percent to $18 billion.

In May, Blackstone won a $20 billion commitment from Saudi Arabia’s sovereign wealth fund for a new infrastructure investment fund, but James said it may be a while before the money gets spent. Saudi Arabia’s commitment depends on Blackstone raising additional cash from other investors, and the firm only just began marketing the fund, he said.

According to James, the fund does not depend on the federal government passing an infrastructure spending package.

“There’s a big opportunity right as we stand today,” he said. “It doesn’t take a genius to see the crumbling infrastructure of the United States and the massive need for new investment.”


Related Articles

arrow_forward_ios
Valley National CEO Ira Robbins and Bank Leumi USA CEO Avner Mendelson (Getty, Valley National, Bank Leumi)
Valley National acquiring Bank Leumi USA for $1.1B
Valley National acquiring Bank Leumi USA for $1.1B
Longfellow Real Estate Partners CEO Adam Sichol with renderings of 310 East 67th Street (Friends UES, Rendering by DBOX, Longfellow)
Blood Center rezoning on Upper East Side approved
Blood Center rezoning on Upper East Side approved
39 Clarkson Street (Google Maps)
Hudson Square office building sold for $46M
Hudson Square office building sold for $46M
Fiserv CEO Frank Bisignano (Getty, Wikimedia)
Fintech firm Fiserv expanding into NJ with new office
Fintech firm Fiserv expanding into NJ with new office
The office space at 99 Church Street  (Google Maps)
Berkeley College selling two downtown White Plains buildings
Berkeley College selling two downtown White Plains buildings
EverWest acquired a Maspeth warehouse from Wharton for $57M
EverWest acquired a Maspeth warehouse from Wharton for $57M
EverWest acquired a Maspeth warehouse from Wharton for $57M
Google CEO Sundar Pichai (Getty/Illustration by Kevin Rebong for The Real Deal)
Google says it won’t claim NYC tax breaks
Google says it won’t claim NYC tax breaks
Housing Court is back and order shall rule: Scheduled first appearances and capacity limits will accompany in-person hearings when they resume mid-October. (iStock)
Housing court is back — with boundaries
Housing court is back — with boundaries
arrow_forward_ios

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

Loading...