Real estate is a hot commodity these days, as consumers nationwide find themselves drawn into bidding wars that are pushing the price of limited single-family housing inventory ever higher, reported PYMNTS. Betting that the market will continue on that hallowed hot streak, Blackstone Group announced today (June 22) that it has agreed to buy Home Partners of America, a company that buys distressed single-family homes, restores them and then rents them out again to tenants. The price of that deal will be $6 billion and is expected to close later this year.
And while the Blackstone deal is notable for its size, it is not unique in the high-action real estate segment, which of late is drawing interest from established investors and ambitious entrepreneurs looking to cash in on a hot market. Home may be where the heart is, but it is also increasingly looking like where the opportunity is to widen the field of players.
Blackstone is not new to the real estate market. After the subprime financial crisis, the investment firm became known for buying up distressed single-family homes and renting them out through a firm called Invitation Homes. Blackstone has since phased out of the market and it no longer holds any shares in Invitation Homes, which has become the largest U.S. firm in this industry with 80,000 single-family homes for lease.
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