With GE deal, Blackstone’s real estate group shows its clout

Private-equity giant has raised biggest funds to be spent on property deals

Apr.April 13, 2015 12:00 PM

Blackstone’s Jonathan Gray

From the New York website: Blackstone Group is increasingly becoming the go-to firm for large real estate transactions.

The $23 billion deal between Wells Fargo, General Electric and private-equity giant Blackstone is the latest proof of the firm’s position in the real estate industry, according to the Wall Street Journal.

“Blackstone’s scale in the real estate space is unmatched,” Morningstar analyst Stephen Ellis wrote in a note to clients Friday, as cited by the Journal. “This type of scale provides Blackstone with deep insight into the market, letting it put more capital to work.”

In recent years, Blackstone raised more than $28 billion to invest in real estate, the newspaper reported. The firm just completed fundraising for its $14.5 billion flagship property fund, which is the largest fund ever raised for real estate. Blackstone also raised the second, third and fourth largest funds, the newspaper reported.

Blackstone has outlived most of its competition. Investment banks such as Morgan Stanley and Goldman Sachs pulled back after their property investments lost value during the downturn. Brookfield Asset Management is among Blackstone’s biggest competitors today as well as publicly traded real estate investment trusts, according to the Journal.

“If you are so much bigger than everyone else, you can really just write a check even with no financing to just make something happen,” Stephen Schwarzman, Blackstone’s chief executive, said during a December conference, according to the Journal. “If you’re having a dialogue with a financial institution, it’s almost like, ‘tell us how much you want to sell, we’ll give you a price.'” [WSJ] — Claire Moses


Related Articles

Blackstone CEO Stephen A. Schwarzman and 5120 Northwest 165 Street

Blackstone buys two Miami Gardens industrial properties for $14M

3208 Northwest 72 Avenue and Blackstone CEO Stephen Schwarzman (Credit: Google Maps and Getty Images)

Blackstone buys industrial portfolio near Miami airport for $56M

Blackstone CEO Stephen A. Schwarzman and Southwest 13th Court (Credit: Google Maps)

Blackstone snags industrial site in Pompano Beach for $10M

Blackstone CEO Stephen A. Schwarzman, the Exchange Lofts apartments at 115 Northeast Third Avenue in Fort Lauderdale

Blackstone sells the Exchange Lofts in downtown Fort Lauderdale for $23M

Southern Palm Crossing with Blackstone president Jon Gray and InvenTrust Properties CEO Thomas P. McGuinness

Blackstone sells Costco-anchored shops to InvenTrust for $97M

Stephen A. Schwarzman and 8482 Northwest 96th Street (Credit: Google Maps)

Blackstone buys 9-acre industrial site in Medley

Blackstone CEO, 14500 Hotel Road and 14700 Hotel Road, 130 North University Drive

Blackstone bets on Broward County with hotels purchase

Clockwise from top left: Doral View and Town Fontainebleau Lakes, Alister Boca Raton, Luma West Palm, Glen Apartments, Avana Cypress Creek Apartments

Here are South Florida’s top five multifamily sales in June