Elevated interest rates have put pressure on landlords with loans on rental housing and other commercial real estate properties. Monday’s deal was seen by some analysts as a vote of confidence that this pressure has begun easing.
“With this transaction, we believe Blackstone is messaging they view interest rates as stabilizing and access to capital as improved, acting as a positive read-through for the sub-sector,” Jefferies analysts wrote.
A top real estate investor, Blackstone has been sharpening its focus on rental housing, betting on its revival as the supply of apartments in the U.S. is expected to decline due to a slowdown in construction.
