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Blackstone Purchases Single-Family Rental Operator Tricon for $3.5B

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Blackstone will acquire single-family home and apartment rental operator Tricon Residential to the tune of $3.5 billion, the two companies announced Friday morning.

Blackstone will pay $11.25 per share in cash in the deal, which will take Tricon private. The price represents a 30 percent premium over Tricon’s closing share price of $8.63 on Thursday. 

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The Toronto-based Tricon owns about 38,000 single-family rental homes in Atlanta, Phoeneix, Dallas, Charlotte, N.C., and Tampa, Fla., as well as apartment buildings in Toronto, according to Blackstone and Tricon’s website.  Tricon has another 2,500 houses under development, according to Blackstone’s statement. 

The company also has land that could support an additional 21,000 new single-family homes across the U.S. In Canada, it is developing 5,500 market-rate and affordable apartments, per the statement. After the acquisition closes, Tricon plans to build out $1 billion in new single-family homes in the U.S. and $2 billion worth of apartments in Canada. 

Tricon CEO and President Gary Berman said Blackstone “shares our values and our unwavering commitment to resident satisfaction, and we look forward to benefiting from their expertise and capital as we partner in building thriving communities.”

Blackstone will maintain its 11 percent ownership stake in Tricon after the deal closes.

“We are excited that our capital will propel Tricon’s efforts to add much-needed housing supply across the U.S. and in Toronto, Canada,” said Nadeem Meghji, global co-head of Blackstone Real Estate, in prepared remarks. 

Of course, this isn’t Blackstone’s first foray into single-family rentals. The REIT founded Invitation Homes in 2012 and became the largest single-family home operator in America, buying up 30,000 distressed and foreclosed properties. It brought Invitation Homes public in 2017 and sold off its remaining shares in the company just two years later for $1.7 billion

Blackstone also picked up single-family rental operator Home Partners of America in 2021 for $6 billion, scooping up 17,000 houses in the process.

Rebecca Baird-Remba can be reached at rbairdremba@commercialobserver.com.