(Bloomberg) — Blackstone Real Estate Income Trust Inc. has agreed to buy Resource REIT Inc. in a $3.7 billion deal, expanding its bet on U.S. rental housing.
Breit, a non-business real estate investment trust of Blackstone Inc., will buy the Philadelphia-based resource for $14.75 per share and assume its debt, according to a statement Monday.
The deal gives Blackstone a portfolio of 42 garden-style apartment communities totaling more than 12,600 units in 13 states, including Texas, Arizona, Florida, Colorado and Georgia.
“This transaction represents a continuation of our highly-convincing investments in high-quality multifamily communities in growth markets across the US,” said Asim Hamid, Senior Managing Director, Blackstone Real Estate.
The deal for the resource is expected to close in the second quarter. According to the statement, this represents a premium of 63% to the company’s most recently published net asset value of $9.06 per share, which was determined a year ago.
Investors have been flocking to apartment deals as rents rise in the US. In December, Blackstone agreed to buy another real estate investment trust focused on apartments for $3.6 billion. The firm also plans to spend $1 billion to buy rental homes and lease them at reduced rates.
Home prices have become out of reach for many potential buyers, pushing them into rentals instead. The rise of remote working has also led to an increase in migration to cities that are less expensive than New York and San Francisco.
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