Blackstone Swoops into San Diego to Spend Over $1bn on Low-Cost Housing

Blackstone Group Inc. is buying 66 multifamily properties in the San Diego area for more than $1bn and plans to invest some $100m to improve the properties, whose apartments currently provide low-cost housing to thousands of people.

The deal would transfer about 5,800 apartments to Blackstone’s real-estate portfolio from the Conrad Prebys Foundation, named for the developer who assembled the portfolio of properties involved. The firm is spending more than $1bn to acquire 5,800 affordable housing units.

The sale solidifies Blackstone’s position as one of the largest real estate holders in San Diego. The group already owns $4.5bn in county assets including Legoland and the Hotel del Coronado, the Union-Tribune reported.

A representative from the Conrad Prebys Foundation told the Union-Tribune money from the deal will be used for charitable grants primarily in San Diego.

In February, KPBS reported concerns from elected officials and advocates over losing critical affordable housing upon learning the foundation was looking to sell.

Blackstone told the Union-Tribune it plans to keep most units affordable for residents who make 80 percent or less of the area median income.

The transaction, which includes Los Angeles-based investment firm TruAmerica, is expected to close in a matter of weeks, according to the Union-Tribune.

Source: Times of San Diego