Origin Investments’ Post

Blackstone's largest multifamily deal, valued at $10 billion, is the acquisition of Apartment Income REIT (AIR Communities). This signals Blackstone's return to investing in multifamily properties after a pause due to higher interest rates. The acquisition, at $39.12 per share, showcases Blackstone's confidence in stable rates and commitment to quality assets. With 76 properties and over 27,000 units, primarily in coastal markets, the deal strengthens Blackstone's presence in the multifamily sector amid market uncertainties. #Blackstone #MultifamilyDeal #RealEstateInvesting #PropertyAcquisition #InvestmentStrategy #CoastalMarkets

Blackstone Makes a $10 Billion Bet On Multifamily Units As Real Rents Begin Re-Accelerating… The Wall Street Journal's headline announced Blackstone's $10 billion acquisition of Apartment Income REIT, taking the company private. "The acquisition is Blackstone's largest transaction in the multifamily market," WSJ pointed out. This move signals the firm's bullishness on the rental housing market, especially when rents are beginning to re-accelerate. Blackstone agreed to purchase AIR Communities for $39.12 a share, representing a 25% premium to the company's closing share price on Friday. The deal is being completed through the investment management company's $30.4 billion global real-estate fund. Blackstone favors rental housing as one of the hottest places in the commercial property market to invest. The acquisition of AIR will give the investment manager exposure to 76 rental housing communities in coastal markets, including Boston, Miami, and Los Angeles. Blackstone has been aggressively increasing investments in CRE markets, a major bet the Federal Reserve's interest rate hiking cycle has plateaued and cuts near…. #blackstone #multifamilyrealestate #interestrates

📢 Real Estate Insights: Now is a Prime Time to Buy Apartments! 🏢 Key Takeaways from Hamilton Point Investments: Strategic Acquisitions: In May and June, Hamilton Point Investments (HPI) bought four new properties in Houston for $195 million, totaling 1,174 units. Cost Efficiency: These assets were secured at $166,100 per unit, significantly lower than the $210,000 per unit cost from two years ago. Market Timing: HPI's co-founder Matt Sharp highlights that current prices offer the best buying opportunities since 2010-2011 due to an overbuilt market. Investment Strategy: Focus on nearly brand-new properties directly from developers, purchasing below development cost. Fundraising Success: Continuous interest in apartment investments with strong demand from their investor base, driven by the potential for rent inflation and cash flow stability. Technology Integration: While embracing technology, HPI values human interaction, especially in maintenance, and avoids over-reliance on pricing software to maintain tenant affordability and relationships. 👉 According to Matt Sharp, this favorable buying window is expected to last through the end of the year, making it an excellent time to invest in multifamily properties. Stay tuned for more real estate insights! #Colliers #Pittsburgh #MoreIn24 #ThriveIn25 #ClosersCoffee #ColliersCapitalMarkets https://lnkd.in/e7um6mbe

Interesting read with your morning coffee ☕ As I previously stated in a corresponding post regarding this acquisition. Blackstone cannot be ignored... and it certainly hasn't. As the world’s largest commercial real estate owner, Blackstone’s impact stretches well beyond AIR and to the rest of the sector. Blackstone’s acquisition of AIR, which is expected to close next quarter, represents the company’s largest acquisition in the multifamily sector. Blackstone will take the company private. #multifamilyinvesting #multifamily #apartments

Leslie Shaver, Multifamily Dive. Blackstone, a New York City-based investment manager, and Apartment Income REIT Corp. (AIR), based in Denver, announced an agreement for Blackstone Real Estate Partners X to acquire all AIR's outstanding common shares for approximately $10 billion, including debt assumption. Blackstone, the world's largest commercial real estate owner, is buying AIR at $39.12 per share, a 25% premium over its closing price on April 5, 2024. AIR's portfolio includes 27,010 units across 76 rental communities, primarily in coastal markets like Miami, Los Angeles, Boston, and Washington, D.C. Blackstone plans to invest over $400 million in these properties for maintenance and improvement, with potential for further investment for growth. Blackstone, with $337 billion of U.S. investor capital under management, has previously acquired apartment firms including American Campus Communities, Preferred Apartment Communities, and Resource REIT. Nadeem Meghji, Blackstone Real Estate's global co-head, highlighted AIR's portfolio as exceptionally high-quality. AIR has operated independently since 2020 after spinning off from Aimco. Terry Considine, Aimco's founder, led AIR post-separation. The deal comes after a period of low merger-and-acquisition activity in the apartment market. MSCI Real Assets notes this transaction could indicate a recovery from COVID-related shocks and potentially inspire more deals in the sector, as public markets have undervalued apartments relative to private valuations. #blackstone #realestateinvestment #apartmentincome #airreit #multifamilyhousing #commercialrealestate #propertyacquisition #coastalmarkets #investmentmanagement #rentalcommunity #realestateportfolio #marketexpansion #propertyimprovement #housingmarket #realassets #sectorrecovery #propertydeals #apartmentsector #institutionalinvestment #marketvaluation

🔑 A major move in the multifamily market! Equity Residential is set to acquire 11 apartment complexes from Blackstone for $964 million, adding over 3,500 units to its portfolio in key growth markets. This acquisition is not just the largest by a public REIT in seven years, but also a strategic bet on the recovery of rents and property values. 🏙️ #MultifamilyInvesting #GrowthMarkets

🔑 A major move in the multifamily market! Equity Residential is set to acquire 11 apartment complexes from Blackstone for $964 million, adding over 3,500 units to its portfolio in key growth markets. This acquisition is not just the largest by a public REIT in seven years, but also a strategic bet on the recovery of rents and property values. 🏙️ #MultifamilyInvesting #GrowthMarkets

Blackstone's deal to acquire AIR Communities is priced 25% above AIR's stock price at the time of the announcement. But the valuation is closer to what apartment properties are actually trading for on the private market -- suggesting Blackstone is betting that the public markets are inefficiently pricing multifamily REITs. Whether that is true or not, we'll see, but apartments just haven't been trading at the values implied by REIT prices. One of my favorite commentators, CRE Analyst, published a post yesterday estimating an implied cap rate of 4.85%. That is by no means bargain bin discount shopping, but it is market reality. It's within the range of property-level trades for similar product -- high-quality assets in mostly high-quality markets. This is a good reminder that CRE and multifamily pricing indices based on stock prices are often poor gauges for real-world valuations. Stock prices can fluctuate for reasons that have nothing to do with the value of the underlying real estate assets. MSCI had a great chart last year showing valuations based on a repeat sales methodology were substantially higher than one using REIT stock prices. The deal also comes as no big surprise, given that Blackstone's Jon Gray has made headlines in recent months making the case that commercial real estate prices were bottoming and that now is a good time to buy. That's an increasingly accepted view in multifamily, where the consensus outlook now seems to be that multifamily is well-positioned for growth by 2025-26 after working through the multi-decade-high supply wave. It'll be interesting to see if this deal pulls other institutional buyers off the sidelines. I suspect it will. The AIR acquisition provides a good comp for apartment owners -- and a reminder to buyers that they aren't likely to see great real estate at greatly discounted prices. Bigger discounts are more likely to come in lower-tier assets in less-desirable locations. #multifamily #apartments #CRE https://lnkd.in/gCtiRm-B

🐂 On the heels of its recent Tricon Residential $3.5B acquisition in the Single Family Rental sector, and their current views on a bottoming of real estate values, Blackstone announces its largest acquisition in the multifamily sector - via a $10B acquisition of publicly traded AIR Communities. 🏙 Blackstone is making waves in the real estate market with its bold move to acquire AIR Communities, marking its largest transaction yet in the multifamily sector. With a commitment of about $10 billion, Blackstone's acquisition underscores its confidence in the market's resilience and its strategic vision for the future. 💰 Despite recent market uncertainties, Blackstone's decision to invest heavily in apartment buildings sends a strong message of optimism. By injecting an additional $400 million to enhance these properties, Blackstone is not just making an investment, but a statement of belief in the potential of rental housing. 🔍 Jonathan Gray, COO and President of Blackstone, aptly stated, "We are not waiting for the all-clear sign and believe the best investments are made during times of uncertainty." This sentiment encapsulates the ethos driving Blackstone's proactive approach, demonstrating that opportunities abound even amidst market fluctuations. 🏗 This acquisition aligns with Blackstone's broader strategy of diversification and seizing opportunities across various real estate sectors. From data centers to single-family rental homes, Blackstone's recent ventures exemplify its adaptability and foresight in navigating dynamic market conditions. 💼 Furthermore, Blackstone's acquisition of AIR Communities at a 25% premium reflects its confidence in the long-term value of the investment. This move not only benefits shareholders but also underscores Blackstone's commitment to delivering value and driving growth. 📈 As we navigate through evolving market dynamics, Blackstone's bold move serves as a beacon of optimism. It reaffirms the resilience of the real estate sector and highlights the opportunities that lie ahead for savvy investors. #marketoptimism #publicprivatevaluations https://lnkd.in/ejjJSdSD