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Blackstone Nears $550M Refinancing Deal for Sun Belt Multifamily Portfolio

The deal includes a $550 million CMBS loan, which will be secured by 10 apartment complexes primarily located in Texas.
February 9, 2024

Blackstone is on the verge of closing a major refinancing deal for its Sun Belt multifamily property portfolio. The deal involves a colossal $550 million commercial mortgage-backed securities (CMBS) loan, which will be secured by 10 apartment complexes primarily located in Texas.

This notablerefinancing package aims to restructure approximately $618 million in existing debt and will also cover related closing costs estimated at around $15 million. To facilitate this, Blackstone is combining the loan with about $83 million in cash equity.

The portfolio, comprising 3,406 units across the buildings, represents a notable segment of Blackstone’s real estate holdings. These properties, all constructed between 2020 and 2022, were acquired from the same developer for a total of $833.2 million. Notably, several of these buildings were previously linked to Davis Development, an Atlanta-based construction firm.

This move comes when some areas in the Sun Belt have seen a dip in rent growth and an influx of new housing supply. However, Blackstone’s portfolio has shown resilience, with a significant decrease in vacancy rates from 41.3 percent to 5.3 percent from late 2021 to December 2023.

The portfolio’s geographic spread is diverse, with four properties located in the northern suburbs of Dallas, including areas like Richardson, Frisco, and Allen. Three others are situated in the western part of Houston, near Katy, while the remaining properties are in Florida, North Carolina, and South Carolina.

Among these, the Cyan Cinco Ranch in Richmond, Texas, stands out as the largest, featuring 433 units. The Inkwell Watters Creek in Allen, Texas, holds the highest appraised value at $92.7 million.

This is part of Blackstone’s broader strategy in the real estate sector. The firm, known as the world’s largest commercial landlord, recently partnered with Rialto Capital and the Canada Pension Plan Investment Board to purchase a stake in Signature Bank’s commercial loan pool, further expanding its already significant multifamily portfolio.

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