The new Blackstone investment is a big bet on the growth of the rent-to-buy market. In a press release, the company says the new venture will invest in a diversified portfolio of rental properties. The fund manages opportunistic and substantially stabilized real estate funds and other investment vehicles. The firm is targeting a variety of real estate assets, including apartment buildings, office buildings, hotels, and single-family residences.
Blackstone’s real estate new play: the buy-to-sell market. The fund will focus on value creation and asset management. Its goal is to unlock value through proactive asset management. The fund will also recruit and hire talented onsite managers to manage investments. It will focus on major U.S. markets and leverage the firm’s financial strength to secure favorable investment deals. It will also focus on regulatory and zoning approvals to ensure its investments to meet its strict standards.
The company has experience in the rent-to-own market. In 2012, it formed Invitation Homes, which specialized in buying foreclosed homes. At that time, the company was purchasing about $100 million of homes each week. In 2017, it took its stake public and cashed out for $7 billion. Last year, Blackstone got back into the SFR market, with a $300 million preferred equity investment in the company. Then, in June, it made another $200 million investment in Tricon. In addition to its capital commitment, Blackstone also owns a 12% stake in the rent-to-buy housing company.
Housing advocates say the investment is a contradiction to the spirit of current housing policies. For one, housing advocates believe that Blackstone is primarily interested in single-family rental properties. As an example, the company’s recent California rentals are a model of predatory equity evictions. In addition, the firms’ new real estate play, the rent-to-buy market, has a high-risk potential, according to the New York Times.
As the rent-to-buy-market gains in popularity, Blackstone is looking for ways to grow its presence in it. In its latest investments, the firm is focusing on data centers and other digital infrastructure in the United States and abroad. The firm is prioritizing growth from within the firm and recognizing and exploiting new opportunities outside the company. This strategy involves succession planning and external partnerships.
The company’s new real estate play will be focused on the rent-to-buy market. The firm will invest in the US and Europe in a wide range of real estate asset classes. Among these, the Blackstone group is actively investing in the rent-to-buy market. At the same time, the fund has also invested in commercial properties in Asia and Latin America.