KKR Acquires BREIT’s $1.6B Student Housing Portfolio
These properties are anchored to campuses in 10 states.
KKR has acquired an approximately $1.64 billion portfolio totaling 19 student housing assets from Blackstone Real Estate Income Trust. The transaction is expected to close by the third quarter of this year.
KKR’s investment comes primarily from its KKR Real Estate Partners Americas III fund. Gibson, Dunn & Crutcher advised KKR, while TSB Capital Advisors, J.P. Morgan Securities and Simpson Thacher & Bartlett advised BREIT.
The properties, which include more than 10,000 beds, are anchored to 14 four-year public universities in 10 states. BREIT purchased the portfolio alongside Greystar Real Estate Partners in 2018.
University Partners will manage the properties. KKR initiated University Partners in 2016, leveraging industry veterans to create vertically integrated platforms for attractive real estate sectors. The company acquired properties in key university markets and expanded University Partners’ business to include third-party property management.
After closing the transaction, University Partners will own and manage more than 25,000 beds, accounting for almost $4 billion. The deal will facilitate KKR’s expansion into multiple new markets.
Blackstone’s major deals this year
The news comes on the heels of Blackstone’s agreement to acquire Apartment Income REIT Corp. for $10 billion. Blackstone Real Estate Partners X will purchase the firm in an all-cash transaction and assume its existing debt. Plans call for a $400 million investment in AIR’s portfolio, which consists of 76 multifamily properties.
At the beginning of this year, Blackstone agreed to purchase Tricon Residential in a $3.5 billion deal, taking the firm private. That portfolio comprises a $1 billion development pipeline of single-family homes in the U.S. and a $2.5 billion development pipeline in Canada, as well as 38,000 rental homes in the U.S.
