Blackstone is acquiring Bluerock Civil, a real estate investment trust focused on multifamily properties, for $3.6 billion as part of his efforts to continue to strengthen the rental market. investment giant.
New York-based Bluerock Residential Growth Corporation REIT announced Monday that it has reached an agreement to sell its outstanding common stock to affiliates of Blackstone Real Estate for a price $24.25/share – an all-cash transaction that Bluerock says represents a 125% premium over its closing price on September 15, when it was first revealed that multifamily developers and landlords have discover a sale.
After closing at $15.44 on Friday, shares of Bluerock were up more than 75% to $27.11 as of 4 p.m. Monday.
Blackstone will purchase 30 rental properties including approximately 11,000 in the sale, along with a loan book secured by 24 multifamily properties. The average garden-style properties are about 20 years old and are primarily based in Sun Belt markets like Atlanta, Phoenix, and Orlando.
The deal comes a month after Blackstone secured nearly 1.1 billion dollars debt to refinance an existing multifamily portfolio that includes approximately 5,450 apartments across 13 properties, primarily in Florida, Georgia and Texas.
Not included in the transaction are Bluerock’s approximately 3,400 single-family rental homes, which the company says are being spun off into a new REIT called the Bluerock Homes Trust.
Asim Hamid, Senior Managing Director at Blackstone Real Estate, said: “Bluerock’s portfolio includes high-quality multifamily properties in markets across the US that are experiencing some growth. The strongest fundamental rule. “We aim to bring the best management services to these hotels.”
Morgan Stanley and Eastdil Secured have advised Bluerock on the sale, which is expected to close in the second quarter of next year.
Bluerock has been discover a sale or a refinancing since September, Bloomberg first reported.
Meanwhile, Blackstone’s residential ambitions have become increasingly apparent in recent months.
In June, it was announced that the investment giant is receiving back into the single-family rental business with the $6 billion acquisition of Home Partners of America, which specializes in rental-to-own.
The company is also making changes in the multi-family market. On Sunday, Bloomberg reported that Blackstone was close to reaching an agreement to buy 8 Spruce Street – a luxury rental tower designed by Frank Gehry in Lower Manhattan – from Brookfield Asset Management and Nuveen. for $930 million in what will be one of the city’s biggest multi-family deals since the start of the pandemic.
https://therealdeal.com/2021/12/20/blackstone-buying-multifamily-reit-bluerock-for-3-6b/ Blackstone Buys Multiple Bluerock REIT Families for $3.6 Billion