Property Growth
The formation of LivCor is another step in the exponential growth of Blackstone’s real estate business in the past decade. The firm is the biggest manager of private-equity property funds, with $81.3 billion under management as of March 31. That’s more than triple its holdings at the end of 2007.
Since the financial crisis, Blackstone also formed a warehouse-property landlord, IndCor Properties, and a company to own shopping centers, Brixmor Property Group Inc., by taking advantage of opportunities to buy assets at discounts from distressed sellers.
In single-family housing, Blackstone has spent about $8.6 billion to acquire assets and created a company called Invitation Homes to oversee the house rentals.
“You’re probably a little behind the curve if you’re getting in the game right now,” Reis’s Severino said of apartment investing. “There are still opportunities out there if you pick your spots and be careful about the amount you’re willing to pay.”