Blackstone goes all-in on South Florida affordable housing with over $300M portfolio deal

Blackstone’s trust bought over a dozen apartment communities

Miami /
Jan.January 19, 2022 02:39 PM

Laguna Pointe Apartments at 903 Southwest 15th Street in Pompano Beach, 25370 Southwest 137th Avenue in Homestead and Sanctuary Cove Apartments at 5301 West McNab Road in North Lauderdale (Redfin, Apartments.com, Google Maps)

Blackstone Real Estate Income Trust went all-in on South Florida affordable housing, scooping up more than a dozen apartment communities for more than $300 million.

New York-based Blackstone’s trust, through various affiliates, bought 13 properties from entities tied to Hollywood-based The Cornerstone Group, records show.

This is part of a larger portfolio deal, as Cornerstone Group said in a statement that it sold a total of 42 properties to Blackstone. The remaining deals are not yet reflected in public deed records.

In a statement, Blackstone said the deals are a continuation of its commitment to affordable housing.

“These communities provide critical affordable housing and we look forward to being long-term owners,” Blackstone said in an emailed statement. “We will make significant investments to improve the apartments while ensuring they remain affordable and in compliance with all rent regulations.”

In Miami-Dade County, BREIT bought the 340-unit Tuscany Place Apartments at 25370 Southwest 137th Avenue in the Princeton neighborhood for $30.9 million, the 192-unit Bay Winds Apartments at 11900 Northeast 16th Avenue in the Biscayne Shores neighborhood for $25.4 million, and the 148-unit Valencia Pointe Apartments at 2640 Northwest 79th Street in West Little River for $12.7 million, according to deeds. All of the properties are in unincorporated Miami-Dade.

The biggest chunk of the portfolio is in Broward County. In Pompano Beach, BREIT bought the 188-unit Laguna Pointe Apartments at 903 Southwest 15th Street for $17.3 million, and the 224-unit Oaks at Pompano Apartments at 501 Southwest First Court for $14.7 million.

In North Lauderdale, it bought the 322-unit Cross Keys Apartments at 1850-2100 Southwest 81st Avenue for $14 million, and the 292-unit Sanctuary Cove Apartments at 5301 West McNab Road for $26.7 million, records show.

In other Broward deals, BREIT bought the 212-unit Harbour Cove Apartments at 100 Northwest Ninth Terrace in Hallandale Beach for $19.4 million, the 312-unit Aqua 2800 Apartment Homes at 2700-2850 Northwest 44th Street in Oakland Park for $32.1 million, and the 300-unit Banyan Pointe Apartments at 3597 Wiles Road in Coconut Creek for $31.2 million, according to deeds.

The Palm Beach County communities that are part of the deal include the 122-unit Boynton Beach Apartments at 1866 Northeast Sixth Street, purchased for $19.2 million; the 270-unit Portofino Apartments at 2767 10th Avenue North in Palm Springs, purchased for $24.1 million; and the 344-unit Renaissance Apartments at 4200 Bear Lakes Court in West Palm Beach, purchased for $32.6 million, according to county records.

BREIT was founded in 2017 with the aim of allowing individual investors to enter institutional real estate, according to its website. It is a net-asset value trust that is registered with the Securities and Exchange Commission but is not listed publicly. Global asset manager Blackstone’s CEO is Stephen Schwarzman.

Cornerstone Group, led by Lenny Wolfe, is an affordable housing developer and manager, with properties throughout Florida, according to its website.





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