Blackstone moving into apartments

|About: The Blackstone Group L.P. (BX)|By:, SA News Editor

The country's largest single-family landlord but vastly slowing its purchases of homes, Blackstone (BX +0.9%) is looking to expand LivCor - a Chicago-based company set up last year consolidating purchases of stakes in 71 apartment properties.

The P-E- firm is focusing on suburban areas where there hasn't been as much new apartment construction in recent years, according to Nadeem Meghji, who is overseeing the business. "A lot of what’s getting built is urban mid- and high-rise product,” says Meghji. “There are fewer suburban, garden-style four-story walkups being built in most of our markets because suburban rental rates are not high enough to justify new construction.”

“Pent-up demand is going to result in more than 1M households being formed annually the next several years ... We should have more demand than total housing supply for the next three years.”