Blackstone. Credit: Roman Tiraspolsky/Shutterstock.com
Blackstone Real Estate Income Trust Inc. agreed to buy Resource REIT Inc. in a deal valued at $3.7 billion, expanding its bet on U.S. rental housing.
BREIT, the nontraded real estate investment trust of Blackstone Inc., will buy Philadelphia-based Resource for $14.75 a share and assume its debt, according to a statement Monday.
The deal gives Blackstone a portfolio of 42 garden-style apartment communities totaling more than 12,600 units in 13 states, including Texas, Arizona, Florida, Colorado and Georgia.
“This transaction represents a continuation of our high-conviction investing in top-quality multifamily communities in growth markets across the U.S.,” said Asim Hamid, senior managing director at Blackstone Real Estate.
The deal for Resource is expected to close in the second quarter. It represents a premium of 63% to the company’s most recently published net asset value of $9.06 a share, which was determined a year ago, according to the statement.
Investors have been flocking to apartment deals as rent surges in the U.S. In December, Blackstone agreed to buy another real estate investment trust focused on apartments for $3.6 billion. The firm is also planning to spend $1 billion to buy rental homes and lease them out at reduced rates.
Home prices have soared out of reach for many potential buyers, pushing them into rentals instead. The rise of remote work has also led to a surge in a migration to cities that are less expensive than New York and San Francisco.
Natalie Wong reports for Bloomberg News.
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