Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), has formed a joint venture with Landmark Properties, an Athens, Georgia-based student housing developer and owner-operator.
The $784 million joint venture plans to acquire and recapitalize a portfolio of eight Class A student housing properties with 5,416 beds.
Jacob Werner, senior managing director at Blackstone Real Estate, said that the assets are “concentrated at leading U.S. universities with growing enrollments.”
“Student housing has a history of being resilient while generating strong cash flows…,” said Werner. “We look forward to growing our presence in this asset class and working [with Landmark] on future transactions.”
Landmark, which has $7.7 billion of assets under management, oversees a portfolio of more than 75 student housing properties with roughly 50,600 beds.
Blackstone REIT invests primarily in stabilized U.S. commercial real estate, and to a lesser extent, real estate debt investments. As of July 31, 2021, the REIT owned a property portfolio valued at roughly $49.7 billion and had investments in real estate debt totaling $6.4 billion. Its initial offering launched in August 2016 and has raised $31.2 billion in three public offerings as of June 2021. The REIT has raised $7.7 billion in the current offering, as of mid-August 2021.