Supply and Demand: The push to understand building energy use | EXPLORE→
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)

Blackstone to Pay $3.7b for REIT in Latest Rental Push

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

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.

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.

Image - Design