Trey Feraco’s Post

Blackstone's Multifamily Investment in AIR Communities: Seizing Opportunities 💼 Blackstone acquires upscale apartment owner AIR Communities (AIRC) for $10 billion, signaling a return to aggressive investments in real estate. Key Points: 🏢 Acquisition of AIR Communities includes 76 rental housing communities primarily in coastal markets. 💰 Blackstone plans to invest an additional $400 million to enhance the properties. 📈 Largest transaction in the multifamily market for Blackstone, showcasing bullishness on rental housing and commercial real estate. Investment Strategy: 🔍 Blackstone sees signs of real estate recovery and believes in seizing opportunities during uncertain times. 💡 Recent investments include acquiring a stake in a $17 billion loan portfolio and forming ventures in data centers and single-family rental homes. Transaction Details: 💲 Acquisition price of $39.12 per share, a 25% premium to AIR Communities' closing share price. 💼 Transaction valued at about $10 billion, including debt assumption, to be completed in the third quarter. Outlook: 🏘 Blackstone views multifamily and rental housing as promising segments despite challenges like new supply and higher interest rates. 📈 Markets in AIR Communities' portfolio show resilience compared to others, making it an attractive investment opportunity. Conclusion: 🔄 Blackstone's move reflects confidence in real estate markets and a strategic approach to capitalize on emerging opportunities in multifamily properties. https://lnkd.in/ge-Y3hax

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

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’s $10B Multifamily Buy: A Strong Message to the Market As I shared during a recent panel at the Appraisal Institute - Metro NJ Chapter Conference in Princeton NJ, I emphasized the significance of Blackstone’s monumental $10 billion acquisition of AIR Communities. This strategic move by the institution sends a powerful message to the market, reflecting a shift in investor sentiment and providing valuable insights for industry stakeholders. Especially noteworthy is the fact that private capital typically moves much quicker than institutions. Thus, the institutions’ decisive action at this juncture indicates even greater confidence in the market. When institutions are making moves, it signals that this is indeed the time to take action. Despite recent challenges, including projections of temporary lower occupancy due to anticipated supply through 2025, the multifamily sector remains resilient. With single-family homes becoming increasingly expensive for home ownership, the demand for rental apartments is expected to rise, further bolstering the appeal of multifamily investments. This trend was further underscored by Blackstone’s recent acquisition of Tricon Residential , a single-family home operator, for $3.5 billion. Blackstone’s 10B acquisition underscores the value proposition of multifamily properties at this juncture. It signals confidence in the market and asset class and highlights opportunities for investors to capitalize on potential upside. As we navigate through evolving market conditions, staying attuned to transformative developments such as this is crucial for making informed investment decisions. #RealEstate #Multifamily #Apartments #Investment #MarketInsights #PropertyInvestment #Advice #newjersey Appraisal Institute Connor Montferrat Matthew Englehardt The Eider Group at Marcus & Millichap

$191B. #TuesdayCRE #CommercialRealEstate #CommercialDebt #CommercialInsurance Blackstone sees a recovery in the commercial real estate market coming and is acting accordingly, making major investments in the sector, most notably in multifamily rentals. #SourcingAndSelling #SellingAndSourcing #Retwit #2024 ~ If you have real estate, and you are willing to entertain offers, have debt to refinance, or in need of insurance for your properties, reach out to me with the details: Lance@RealtyByLance.Com 305.203.2070 ~ Contact Us for Commercial Investments, Financing and Insurance. ~ Multifamily, Industrial, Hotels, Office, Retail, Development Sites, Plus. #ListWithLance #LanceLoans #LetLanceInsureYou #CRE #Owners #InvestmentProperties #Multifamily #Industrial #Hospitality #Retail #Development #Construction #Commercial #CommercialTransactions #CommercialFinance #CommercialInsurances #CommercialTitleAndClosing #CommercialProp https://lnkd.in/ei-zGB8g

WHY WON’T WALL STREET BUILD SFR? Just a few months ago, Blackstone paid $3.5B to purchase Tricon Residential, which owns 38,000 single-family rental homes across the Sun Belt and has a $1B development pipeline. That’s a strategy to control supply and pricing rent which Wall Street began shortly after the 2008 housing crisis. They have made billions from sucking all the equity from working families and minority neighborhoods. SFR should be owned by families, not Wall Street. Paying 25% premium for multifamily REIT with planned $400 million investment will require huge rental increases to justify investor interest. These increases will ripple to the SFR rentals too. Read below ⬇️ “With perfect hindsight into the 2008 housing collapse, it is clear that patient and flexible capital would have enabled many homeowners to hold onto their home equity. Entire neighborhoods would not have been devastated, and a generation of Black and Latino or Hispanic assets would not have washed out to sea.” -Brookings Institute ⬇️ The mission statement of Ellavoz.com is to keep #homeownership attainable for hard working American families in underserved communities. This is the opposite mission of most Wall Street real estate investment funds. If you believe in our mission, and #sharedvalues #impactinvesting please contact me personally to discuss joining our #impactangelnetwork.

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

While we’ve done dozens of development deals in the past few years, we’re excited to announce our first property purchase since February 2020: the impending acquisition of a 300-unit garden-style multifamily property in suburban Dallas.     In today’s Bisnow article, Origin Co-CEO David Scherer discusses the impact of recent high-profile transactions by investment giants like KKR and Blackstone. With stabilized interest rates and strong fundamentals, multifamily demand is set to outpace supply. Read the article here: https://bit.ly/3XIGcFY #realestate #multifamilyinvestments #markettrends 

Blackstone's recent move to take Apartment Income REIT AIR private has caught the attention of many analysts. With Blackstone recently taking Tricon Residential private, some believe this is a signal that interest rates are stabilizing and access to capital has improved. Blackstone seems to be focusing its efforts on rental housing and this move appears to be in line with that strategy. The timing of Moody's Dr. Thomas LaSalvia's recent prediction of a rate cut of up to 75 BPS this year is also noteworthy. Many firms are bullish on SFR/BTR this year and beyond. #RealEstate #RentalHousing #RateCut #SFR #BTR #LendingOnePrivateClientGroup #LendingOne