Blackstone’s $3.7B REIT Buy Boosts Multifamily Drive
Deals announced in the past month alone will add 23,000-plus units to the firm's holdings.
The Estates at Johns Creek. Image courtesy of Resource REIT
Blackstone Real Estate Income Trust’s acquisition of Resource REIT is the latest in a series of moves that will further enhance the company’s stature as a multifamily powerhouse. Since late December, Blackstone affiliates have announced deals that will add upward of 23,000 units to the firm’s holdings in the sector.
In the latest deal, announced Monday, Blackstone REIT will acquire all outstanding shares of Resource REIT’s common stock for $14.75 per share and assume all its debt. That translates to a total price tag of $3.7 billion.
Blackstone acquired Resource REIT’s portfolio of 42 garden-style multifamily communities with more than 12,600 units. The properties feature significant green space and amenities and are found in some of the strongest submarkets in Arizona, California, Colorado, Florida, Georgia, Illinois, Minnesota, North Carolina, Ohio, Oregon, Pennsylvania, Texas and Virginia. The transaction does not include three multifamily properties that Resource REIT had already sold.
The Resource REIT acquisition follows last month’s deal for Bluerock Residential Growth REIT by affiliates of Blackstone Real Estate. Expected to close during the second quarter, the deal will add 11,000 units to Blackstone’s portfolio, as well as a loan book secured by 24 multifamily assets. The properties are located primarily in four Sun Belt markets as well as Denver and comprise garden-style assets completed around 20 years ago.
The Resource REIT and Bluerock Residential acquisitions will considerably expand multifamily holdings that totaled 133,000 units as of September 2021, comprising 50 percent of its assets. Industrial accounted for 28 percent at most recent report. Blackstone’s wide-ranging real estate properties also encompass net lease, hospitality, data center, self storage, office and retail properties.
BofA Securities, BMO Capital Markets Corp., Eastdil Secured Advisors and RBC Capital Markets are serving as financial advisors to Blackstone in the transaction. Simpson Thacher & Bartlett LLP is serving as legal counsel. Lazard Frères & Co. is serving as exclusive financial advisor to Resource REIT. DLA Piper is serving as legal counsel.
The acquisition was approved by Resource REIT’s Board of Directors and is expected to close in the second quarter of 2022, subject to closing conditions, including the approval of the REIT’s common stockholders.
