Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), has filed a registration statement with the Securities and Exchange Commission for an additional $10 billion in shares, comprised of $8 billion in Class S, Class T, Class D and Class I shares of common stock and $2 billion in distribution reinvestment plan shares.
Blackstone REIT has raised a staggering $2.8 billion in investor equity since breaking escrow in January 2017, solidifying its position as the industry’s leading non-traded REIT. During the first quarter of 2018 alone, the company raised an impressive $602 million, which was 66 percent of the non-traded REIT market, according to Summit Investment Research. Shares are currently priced between $10.54 and $10.71 each.
The REIT’s original registration statement was declared effective in September 2016 and consisted of up to $5 billion in shares of common stock ($4 billion in the primary offering and $1 billion in distribution reinvestment plan shares). As of June 11, 2018, approximately $1.9 billion in shares remain unsold.
According to the preliminary prospectus, the company plans to continue its investment strategy of acquiring stabilized commercial real estate in the United States, and to a lesser extent, real estate-related securities.
Like its previous registration statement, Blackstone REIT plans to continue offering the same share classes, which each have different upfront selling commissions and ongoing stockholder servicing fees.
Class T shares have a maximum 3 percent selling commission and a 0.5 percent dealer manager fee. The shares also include an advisor stockholder servicing fee of 0.65 percent per year and a dealer stockholder servicing fee of 0.20 percent per year of the total net asset value.
Class S shares include a maximum 3.5 percent selling commission and no dealer manager fee. The shares include a stockholder servicing fee equal to 0.85 percent per year of the total net asset value. Class T and class S shares are available to purchase through brokerage and transaction-based accounts.
Class D shares may include a maximum 1.5 percent selling commission and have a stockholder servicing fee equal to 0.25 percent per year of the total NAV. These shares are available for purchase through fee-based programs known as wrap accounts, and through participating broker-dealers, certain registered investment advisers, and through bank trust departments or other organizations.
Class I shares have no selling commissions, dealer manager fees, or stockholder servicing fees. The shares are available for purchase by endowments, foundations, pension funds and other institutional investors, as well by REIT executives, directors, and their immediate family members.
The minimum initial investment is $2,500 for Class T, Class S or Class D shares and $1 million for Class I shares.
Blackstone Real Estate Income Trust, a perpetual life, monthly NAV REIT, invests in stabilized income-oriented commercial real estate in the United States and real estate-related securities. The company is headquartered in New York City and externally managed by BX REIT Advisors., a subsidiary of Blackstone. Blackstone REIT has raised more than $2.8 billion in investor equity since inception and oversees a $6.8 billion portfolio comprised of 272 individual properties and various CMBS investments, as of March 2018.