Although there has been a lot of speculation about Blackstone’s intentions with the large multifamily portfolio that it has accumulated over the past few years, early indications are that the New York City-based private equity group will continue to play offense in multifamily.
Case in point: Blackstone recently purchased the 473-unit Ellington Midtown in Atlanta from Goldman Sachs Asset Management, a group with which it has a longstanding relationship.
Ellington Midtown sits in the heart of Atlantic Station, a mixed-use development with office, high‐end retail, entertainment and grocers. It’s located in Midtown Atlanta, a retail and entertainment corridor and employment hub surrounding Georgia Tech. Nearby employers include Microsoft, McKinsey, Wells Fargo and Invesco.
“Located in one of the most dynamic submarkets in Atlanta, our purchase of Ellington Midtown illustrates our ability to deploy capital in our high conviction investment themes even during volatile times,” Asim Hamid, senior managing director for Blackstone Real Estate said in a statement shared with Multifamily Dive.
Ellington Midtown has newly renovated apartment homes, according to its website. However, Blackstone plans to invest several million dollars in upgrades, including improving common areas, unit interiors, swimming pool areas and the fitness center. It also will institute new operational standards at the property, which is currently 94% occupied.
Like many investors, Blackstone has been attracted to apartments in the Sun Belt. In June 2022, it acquired REIT Preferred Apartment Communities in a $5.8 billion all-cash deal, adding 44 multifamily communities with nearly 12,000 units in Sun Belt cities.
Other recent deals include:
- December 2021: BREIT bought a $5.1 billion portfolio of affordable housing from AIG.
- May 2022: BREIT bought Resource REIT for $3.7 billion.
- August 2022: BREIT, along with other company funds, closed the acquisition of American Campus Communities in a $13 billion deal.
- October 2022: Affiliates of Blackstone Real Estate bought Bluerock Residential Growth REIT for $3.6 billion.
At the Urban Land Institute’s annual fall meeting in Dallas last year, Kathleen McCarthy, global co-head of Blackstone Real Estate, said that the company was focusing on rental housing.
“What’s happening in the for-sale market in terms of the upward cost and ownership is really driving more demand for rental housing in all forms,” McCarthy said.
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