The following report is by Bloomberg, with some additional quotes from Blackstone’s press release:
Blackstone Inc. struck a roughly $10 billion deal for an apartment landlord in the latest sign that the real estate investor sees a ripe moment to pour money into the property market.
Blackstone agreed to acquire Apartment Income REIT, known as AIR Communities, in an all-cash deal for $39.12 a share, according to a statement Monday. That’s a 25% premium from the company’s share price of $31.35 at the close of trading on April 5.
The asset manager plans to invest more than $400 million to maintain and bolster the company’s apartment portfolio. Blackstone Real Estate Partners X, a fund that raised more than $30 billion, will purchase the shares.
The AIR Communities acquisition is Blackstone’s latest housing bet, following its $3.5 billion agreement to take single-family landlord Tricon private earlier this year. The company is stepping up its hunt for deals as prices fall in commercial property markets, with President Jon Gray telling investors the firm believes “real estate values are bottoming.”
AIR Communities represents the highest quality, large-scale apartment portfolio we have ever acquired, and is located in markets where multifamily fundamentals are strong. We are very impressed by the terrific operating team at AIR Communities and look forward to working closely with them, while continuing to deliver a fantastic resident experience.
Nadeem Meghji, global co-head of Blackstone Real Estate, said in the statement.
AIR Communities, based in Denver, has a portfolio of 76 apartment communities marketed to high-end renters, with concentrated holdings in Miami, Washington and other large markets. The average household income of the company’s tenants was $237,000 in 2023, with average revenue of more than $2,700 per unit, according to a presentation.
The apartment market has come under pressure in recent months as owners confront higher borrowing costs and falling valuations. Prices of those buildings in the past 12 months through March have dropped 8%, according to real estate analytics firm Green Street.
The deal is expected to close in the third quarter, according to the statement.
I am proud of the AIR team and its remarkable culture. The transaction will strengthen the AIR mission to provide homes for others, be a great place to work, act as responsible stewards of AIR communities, and be a trusted partner to AIR investors.
The business the AIR team has built will be improved and expanded by collaboration with Blackstone and a shared focus on serving residents and investing wisely. The AIR team is grateful to Blackstone for the opportunity and for its faith in what can be accomplished working together.
Terry Considine, President & CEO of AIR Communities, said
AUTHOR COMMENTARY
It’s important to not confuse Blackstone with Blackrock. Both are similar, but a little different:
Blackstone is the world’s largest private equity firm, and in more recent times have been seen as an alternative private investment bank, and renowned for its aggressive acquisitions. Blackrock is the world’s largest asset management firm, has the largest concentration of assets under management in the world, and has been maligned as basically “owning the world” because they have so much stake in so many companies around the world. When combined with Vanguard, the second largest asset manager, Blackrock and Blackstone collectively manage a whopping $20 trillion in assets!
I mention this because this harkens back to what I just wrote about, how there is not going to be a housing crash anytime soon, based on the data; and a key factor behind this is heavy institutional buying such as this, by Blackrock, Blackstone, Vanguard, State Street, and a myriad of others. So, even if a massive housing crash of epic proportions were to occur, these groups have blank checks, deep pockets, and no restraints to buy whatever for pennies on the dollar. I’m not saying that “all hope is lost,” sort of speak, but we also need to be realistic and be truthful with what’s going on.
SEE: Sorry, There Will Be No Housing Crash. Stop Listening To The Liars And Sensationalists
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
A nation of renters is being transformed; and as the World Economic Forum has clearly stated: “You’ll own nothing and be happy” by 2030. But again, I also stress patience and vigilance, as opportunity and chance will present itself I do believe in the future, so don’t fret and get really depressed about it. More on this in future reports…
Blackstone To Shell Out Another $50B Ahead Of Housing Crash To Scoop Up Swaths Of Neighborhoods
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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Jacob, This news is for Insightful and I Thank You for it. When I think about a “Housing Crash”, it is related to the (General Population/Mortgagee’s that are in homes now! When these people start losing their employment and can no longer make their mortgage payments, they would forced out and the home is now the banks or whatever financial institution. THAT, is when companies like Blackstone will come in and buy them up (at bottomed our values). I am not sure what they will do with those homes from that point? But yes.. the folks that used to
Live in those houses, will not be funneled into the “Renting Apartments “ or whatever. Which is as you state… part of the plan (Own Nothing and Be Happy / 15 Minute City) goals. Thoughts?
Populations are becoming renter nations. When more banks collapse and default this year and after, and their assets will get bought up, or bailed-in and the investors will lose out, and thus forces the slave state. Ultimately, within a few years time, I firmly believe that a lot of people are going to die from just a convergence of all these problems – collapsed economy and failing money, famine, disease, war and anarchy, and so forth. I plan to talk more of this in incoming articles with scripture.
Sure ‘bet’ when the whole thing is rigged! And, the ‘house’ always wins. Nothing that both of those ‘stones’, ‘rocks’ are black like that 6-sided Ka’abba thing in Mecca. The interpretation & distinctions given in Deuteronomy 32, & 1 Peter 2 KJB. The Lord is with his own.