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Blackstone REIT Joint Venture Buys Student Housing Portfolio

A joint venture partnership between Blackstone Real Estate Income Trust and Landmark Properties purchased four student housing properties in Tier 1 markets.

A joint venture partnership between Blackstone Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust, and Landmark Properties, has purchased four student housing properties with 2,248 beds located in Tier 1 markets for an undisclosed price.

Last August, Blackstone REIT announced the $784 million joint venture with the Athens, Georgia-based student housing developer with plans to purchase and recapitalize a portfolio of eight Class A student housing properties with 5,416 beds.

“Landmark is excited to expand its relationship with Blackstone through the acquisition of this portfolio of core assets at universities with strong enrollment growth and high barriers to entry,” said Wes Rogers, Landmark president and chief executive officer.

Jacob Werner, Blackstone’s co-head of real estate acquisitions Americas, said the transaction reflects the company’s “ongoing confidence in the student housing sector.”

Blackstone REIT announced a number of all-cash residential deals in recent weeks, including agreements to purchase Resource REIT, a non-traded REIT, in a transaction valued at $3.7 billion, and Preferred Apartment Communities (NYSE: APTS), in a deal valued at approximately $5.8 billion.

Landmark Properties has $8.3 billion of assets under management and oversees a portfolio of more than 80 student housing properties across the country and approximately 54,000 beds, including $2.7 billion in assets currently under construction.

Blackstone REIT, managed by private equity giant The Blackstone Group (NYSE: BX), manages a portfolio of $84.7 billion in real estate investments and $9.1 billion in real estate debt as of January 2022. Its initial offering launched in August 2016 and raised $46 billion in three public offerings as of December 2021. The REIT has raised $18.7 billion in the current offering, and its $60 billion follow-on was recently declared effective by the Securities and Exchange Commission.

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