Blackstone to pay $3.7B for REIT in latest rental push

BREIT acquiring Resource REIT’s 12K-unit portfolio across 12 states

Alan Feldman, chief executive officer, president & chairman of the board, Resource REIT; Stephen Schwarzman, chairman, ceo & co-founder, Blackstone (Resource REIT, Getty Images, 1000 Spalding Apartment Homes)
Alan Feldman, chief executive officer, president & chairman of the board, Resource REIT; Stephen Schwarzman, chairman, ceo & co-founder, Blackstone (Resource REIT, Getty Images, 1000 Spalding Apartment Homes)

The Blackstone Group notched another deal this week in its continued push into the rental market.

Philadelphia-based Resource REIT announced it was being acquired by Blackstone Real Estate Income Trust in a transaction valued at $3.7 billion. BREIT agreed to acquire outstanding shares of the REIT for $14.75 per share, a premium of 63 percent on the REIT’s Net Asset Value of $9.06 per share, determined last January.

“This transaction represents a continuation of our high-conviction investing in top-quality multifamily communities in growth markets across the U.S.,” said Asim Hamid, senior managing director at Blackstone Real Estate.

Once the deal closes, BREIT will acquire 42 multifamily, garden-style apartments from Resource REIT. The communities include more than 12,600 units and are located in 13 states, including Georgia, Florida and Texas.

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The transaction is expected to close in the second quarter.

Blackstone has made sizable moves in the rental market with a series of deals in recent months, taking advantage of skyrocketing rents in the multifamily and single-family sectors.

In December, the investment giant agreed to acquire Bluerock Residential Growth REIT in a deal similarly valued at $3.6 billion. Affiliates of Blackstone Real Estate bought common stock for $24.25 per share, set to acquire 30 rental properties comprising about 11,000 units in the deal, along with a loan book secured by 24 multifamily assets.

On the single-family side of the rental business, Blackstone made waves in June by announcing its return to the single-family rental business with a $6 billion acquisition of rent-to-own specialist Home Partners of America. Bloomberg reported last week the investment giant was planning a $1 billion move to expand its backing of its single-family rental offerings.

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