Blackstone Sells $964M Apartment Portfolio To Equity Residential

Blackstone Inc. BX shares are trading higher after it inked a deal with Equity Residential EQR, which will acquire 11 apartment properties for around $964 million.

Equity Residential will acquire the apartment properties from Blackstone Real Estate strategies, including Blackstone Real Estate Income Trust, Blackstone Real Estate Partners, and Blackstone Property Partners.

The portfolio includes four properties with 1,357 units in Atlanta, four properties with 1,237 units in Dallas/Ft. Worth, and three properties with 978 units in Denver.

The transactions, subject to customary closing conditions, are expected to be completed in the third quarter of 2024.

Alec Brackenridge, Equity Residential’s Executive Vice President and Chief Investment Officer, said, “This transaction is a significant step in our goal of generating a higher percentage of our annual net operating income from these strong growth expansion markets. We appreciate partnering with Blackstone on this mutually beneficial transaction and look forward to continuing to grow the relationship.”

Asim Hamid, Senior Managing Director at Blackstone Real Estate, commented, “This transaction represents an excellent outcome for our investors and demonstrates the strong institutional demand for high quality assets. Rental housing remains one of our highest-conviction themes, and we continue to see strong fundamentals in attractive markets.”

Apart from this, Blackstone agreed to a majority investment in Westwood Professional Services, Inc. for undisclosed terms.

Blackstone will acquire its position in Westwood from Endurance Partners, with Westwood’s management team and employee shareholders maintaining a minority stake.

With a team of more than 1,600 employees, Westwood provides front-end engineering design services supporting the development of renewable energy generation, investment in the power grid and the continued buildout of public and private infrastructure across the U.S.

As of June 30, Equity Residential’s cash and cash equivalents stood at $138.4 million.

Investors can gain exposure to the BX stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO and Invesco Global Listed Private Equity ETF PSP.

Also Read:  Blackstone Hits Two-Year Investment Peak, Anticipates Fed Rate Cuts Amid Easing Inflation: Report

Price Action: BX shares are up 0.33% at $130.74 at the last check Wednesday.  

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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