BREIT Securing $845M Refinancing for Apartment Portfolio

Blackstone is teeing up a sizable multifamily refinancing as it looks to reset debt on a sprawling Sun Belt portfolio acquired at the height of the market.

An affiliate of the investment giant’s Blackstone Real Estate Income Trust is about to close on an $845.2 million loan backed by a 12-property, nearly 5,000-unit apartment portfolio, according to a Fitch Ratings presale report first disclosed by Bisnow. The two-year, floating-rate financing is being provided by a lender group led by Deutsche Bank, alongside Société Générale, Bank of Montreal and Nomura.

The debt will replace roughly $924.5 million in existing loans with BREIT kicking in about $94 million of fresh equity to bridge the gap, plus covering closing costs. The structure underscores a familiar theme in today’s market: sponsors writing new checks to refinance loans originated under more favorable conditions.

Blackstone assembled the portfolio in 2021, acquiring a 98 percent stake from Cortland Sponsors in a deal valued north of $1.2 billion. The assets span six states with a heavy concentration in high-growth Sun Belt metros like Tampa, Austin and Charlotte. Cortland retained a minority stake and continues to manage most of the properties.

The portfolio’s performance reflects the broader cooling in multifamily fundamentals across the region. Occupancy has slipped to about 92 percent as of January, down from 94 percent in 2022, as incoming supply puts pressure on rents. Average monthly rent across the properties is $1,728.

Even so, lenders appear comfortable with the fundamentals. Fitch pegged the portfolio’s value at roughly $1.14 billion based on third-party appraisals, implying a loan-to-value ratio around 74 percent. Net cash flow was estimated at $56.2 million.

BREIT poured more than $50 million into capital improvements since acquiring the properties, betting on long-term population growth and income gains in its target markets. All of the units are market-rate and none have major concentrations of senior, student or military housing.

The refinancing comes as BREIT regains its footing after a rocky stretch. The fund logged $7.2 billion in inflows last year, reversing two years of redemption pressure and weak returns. It delivered an 8.1 percent return last year — its strongest in three years — driven largely by heavy data‑center exposure.

— Holden Walter-Warner