Blackstone Launches April Housing Multifamily Real Estate News
Blackstone Real Estate Income Trust formed April Housing, a new holding company that will focus on affordable housing in the United States. The company will provide solutions and capital to create and preserve affordable housing, including assets within its own portfolio.
April Housing’s portfolio will include the more than 90,000 affordable housing units that were acquired by Blackstone following its purchases of American international group in July 2021 and The Cornerstone Group in January 2022. The properties are in major markets nationwide, including Dallas, Houston and Austin, Texas; Denver; Miami and Fort Lauderdale, Florida; Los Angeles and San Francisco.
April Housing will be led by CEO Alice Carr, who will take up her new role in May. Carr has over 25 years of experience in affordable housing. More recently, she held the position of Head of JPMorgan Chase‘s Community Development Banking, leading a team that funded the construction and rehabilitation of affordable housing for low-income families and seniors across the country. Carr will oversee April Housing’s strategy and operations, aimed at advancing Blackstone’s commitment to preserving and expanding the supply of affordable housing.
The newly formed company has indicated that it intends to be a long-term holder of its affordable housing assets. Rents charged at nearly all April Housing properties are set by government regulation under the Low-Income Housing Tax Credit program. Discounted rents on company assets have an average remaining life of approximately 20 years. April Housing intends to invest over $500 million to improve its affordable housing while keeping it affordable.
This is the fourth major tactical move made by Blackstone in the multifamily sector in the past two months. The REIT acquired three separate residential companies, adding more than 35,000 units to its multi-family portfolio. He bought Bluerock Residential Growth REIT end December, Resource REITs end of January and Preferred apartment communities earlier this month.
Blackstone’s multi-family portfolio totaled 133,000 units as of September 2021, representing 50% of its assets. The industry accounted for 28% in its last report. Blackstone’s real estate assets also include net rental, hospitality, data center, self-storage, office and retail properties.