Blackstone buys $5.1B in affordable housing from AIG

Deal is part of agreement involving insurance assets

National /
Jul.July 15, 2021 12:30 PM
Blackstone CEO Stephen Schwarzman (Getty)

Blackstone CEO Stephen Schwarzman (Getty)

Blackstone and AIG have agreed to a massive deal involving the sale of $5.1 billion in affordable housing assets.

AIG sold the assets to Blackstone as part of a “long-term strategic asset management relationship” between the two companies, Bloomberg News reported. Blackstone has been pursuing lower-cost rentals to boost its real estate arm, according to the publication.

In May, Blackstone revealed plans to buy around 5,800 apartments in San Diego County from the Conrad Prebys Foundation, which came with a $1 billion price tag. At the time, Blackstone stated a goal of keeping the rentals affordable to residents earning 80 percent or less of the median income in the area.

In 2019, Blackstone executives were part of a failed effort to reach a compromise on rent reform laws in New York. Blackstone also purchased Stuyvesant Town-Peter Cooper in 2015, agreeing at the time to keep 5,000 of the development’s units affordable for at least 20 years.

The deal between AIG and Blackstone was part of a larger transaction that involved AIG selling a 9.9 percent equity stake in its life and retirement business for $2.2 billion in cash. Over the next six years, the deal is expected to bring some $92.5 billion in assets under Blackstone’s management.

AIG and Blackstone shares both rose in extended trading after the deal was announced, up 6.7 percent and 4 percent, respectively.

[Bloomberg News] — Holden Walter-Warner






    Related Articles

    arrow_forward_ios
    Grover Corlew principal Mark Corlew with Bank of America Tower in Boca Raton (Grover Corlew)
    Grover Corlew buys Bank of America Tower in Boca Raton for $45M
    Grover Corlew buys Bank of America Tower in Boca Raton for $45M
    Landlords keep raising office space rents despite a grim outlook for vacancy rates (Getty)
    Miami office vacancy rates reach Great Recession levels
    Miami office vacancy rates reach Great Recession levels
    The partially collapsed 12-story Champlain Towers South condo building (Getty)
    Inside the tug-of-war over the Surfside condo site’s future
    Inside the tug-of-war over the Surfside condo site’s future
    Moishe Mana and the downtown parking lot he purchased (Google Maps, Getty)
    Moishe Mana expands downtown Miami assemblage with $12M purchase
    Moishe Mana expands downtown Miami assemblage with $12M purchase
    249 Northwest 6th Street and Michael Swerdlow (Arquitectonica, Swerdlow Group)
    Michael Swerdlow’s Block 55 in Overtown lands nearly $8M affordable housing grant
    Michael Swerdlow’s Block 55 in Overtown lands nearly $8M affordable housing grant
    (Photos courtesy of Miami Historic Preservation, Smith Aerials, Colliers)
    Development site near MiamiCentral hits the market
    Development site near MiamiCentral hits the market
    The site and renderings of Premium Development’s nearby project. (Premium Development)
    Multifamily developer buys piece of Little Havana assemblage
    Multifamily developer buys piece of Little Havana assemblage
    Alliance Residential Company CEO Bruce Ward and 6595 Morikami Park Road (Google Maps)
    Alliance Residential buys site, scores $46M construction loan for senior apartments in Delray Beach
    Alliance Residential buys site, scores $46M construction loan for senior apartments in Delray Beach
    arrow_forward_ios

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

    Loading...