South Florida’s rising residential market could be further stimulated by a new bond funded by rental revenue from foreclosed properties.
New York-based private equity giant Blackstone Group launched a $479 million offering of the AAA-rated bonds last week. Blackstone and other large investment firms have spent more than $200 billion on distressed properties in South Florida and other United States markets over the last two years.
Residential observers say the institutional acquisitions are fueling sharp price increases in South Florida, Daily Business Review reported. If Blackstone’s bond sale goes smoothly, it could end up buying even more properties in the region at higher prices. [Daily Business Review] – Eric Kalis