Blackstone to Snag 13K Apartments Through $3.7B Deal for Resource REIT
Manhattan-based investment giant Blackstone, through its Blackstone Real Estate Income Trust, agreed to buy Resource REIT in a $3.7 billion deal, giving the private giant landlord another 42 garden-style apartment communities across 13 states.
Blackstone will buy the Philadelphia-based, non-traded real estate investment trust (REIT) for $14.75 a share, take its debt and gain more than 12,600 apartments, Bloomberg first reported. The deal is expected to close in the second quarter of 2022.
“This transaction represents a continuation of our high-conviction investing in top-quality multifamily communities in growth markets across the U.S.,” Asim Hamid, senior managing director at Blackstone Real Estate, said in a statement.
Blackstone agreed to buy Resource REIT at a 63 percent premium to the company’s net asset value of $9.06 a share, calculated one year ago, according to Blackstone. That’s even as Blackstone’s own share price fell after the Dow Jones dropped by more than 700 points on Monday, CNN reported.
“We are very pleased to reach this agreement with [Blackstone], as it will provide significant and certain value to our stockholders,” Alan Feldman, the CEO of Resource REIT, said in a statement.
Blackstone’s latest billion-dollar deal comes on the heels of rising home prices in the United States, forcing many would-be buyers into the rental market, Bloomberg reported.
The investment giant has been on a tear during the pandemic, purchasing billions of dollars of assets and becoming the largest private landlord in the country. Blackstone entered into an agreement to buy a multifamily landlord, Bluerock REIT, for $3.6 billion in December 2021 and a single-family home rental firm for $6 billion in June 2021.
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