Blackstone Buys Resource REIT for $3.7B

The Estates at Johns Creek. Image courtesy of Resource REIT

Blackstone Real Estate Income Trust has acquired Resource REIT for $3.7 billion. Blackstone will acquire all outstanding shares of Resource REIT’s common stock for $14.75 per share and assume all its debt.

Blackstone acquired Resource REIT’s portfolio of 42 garden-style multifamily communities with more than 12,600 units. The properties feature significant green space and amenities and are found in some of the strongest submarkets in Arizona, California, Colorado, Florida, Georgia, Illinois, Minnesota, North Carolina, Ohio, Oregon, Pennsylvania, Texas and Virginia. The transaction does not include three multifamily properties that Resource REIT had already sold.

Blackstone’s portfolio encompassed 1,599 properties with a total asset value of $66 billion as of September 2021. Multifamily assets, totaling around 133,000 units, comprised 50 percent of its real estate, with industrial around 28 percent. Blackstone also owns net lease, hospitality, data center, self storage, office and retail properties.

BofA Securities, BMO Capital Markets Corp., Eastdil Secured Advisors and RBC Capital Markets are serving as financial advisors to Blackstone in the transaction. Simpson Thacher & Bartlett LLP is serving as legal counsel. Lazard Frères & Co. is serving as exclusive financial advisor to Resource REIT. DLA Piper is serving as legal counsel.

The acquisition was approved by Resource REIT’s Board of Directors and is expected to close in the second quarter of 2022, subject to closing conditions, including the approval of the REIT’s common stockholders.