Blackstone Swings $748M National Portfolio Acquisition

The company acquired the 16 properties from Bridge Investment Group Partners.
Seattle

Seattle

SeattleBlackstone Real Estate Partners VIII LP has acquired a multifamily portfolio consisting of 16 properties from Bridge Investment Group Partners LLC for $748 million.

KeyBanc Capital Markets represented Bridge on the transaction.

“Our team worked diligently to assemble and optimize a nationally-diversified portfolio of assets, leveraging our deep knowledge of local markets, industry relationships, and extensive operational expertise,” Jonathan Slager, co-chief investment officer of Bridge’s multifamily and commercial office investment vertical, said. “We are pleased with the performance and long-run fundamentals of each asset, and believe the substantial interest in the portfolio speaks to Bridge’s successful and streamlined approach to the value-add process.”

The portfolio consists of a total of 5,294 high-quality garden-style apartments in submarkets with positive fundamentals, including Seattle, Portland, Southern California, Phoenix and Raleigh.

“We are gratified by the interest generated by Bridge’s portfolio,” Robert Morse, Bridge’s chairman, said. “Our seasoned teams have a long track record of investing in the multifamily sector, and the extensive ‘roll up your sleeves’ work we do at the asset level translates directly into value to our investors. In the present low-yield environment, we continue to believe that our ability to create value differentiates Bridge from many other managers.”

Bridge’s in-house property management affiliate has been retained by Blackstone to manage the assets post-closing.

Bridge’s investment strategy for multifamily targets value-add “Class B” investments in growth markets and building stabilized, profitable assets through capital improvements, active asset management and multi-cycle investment experience in the sector. In July, Bridge announced the closing of $1.1 billion in equity commitments for this strategy.