NEW YORK--(BUSINESS WIRE)--Blackstone Real Estate Income Trust, Inc. (“BREIT”) announced today that it has entered into a definitive agreement to acquire Home Partners of America (“HPA”), valuing the company at $6.0 billion. HPA’s unique, resident-led business model expands housing access and choice, while providing a clear path to homeownership to individuals and families across the United States. BREIT’s investment in HPA will be supported by its perpetual capital, enabling a truly long-term approach to the management of the properties. Furthermore, Blackstone’s substantial experience with rental residential properties and commitment to acting responsibly to support residents will bring valuable perspective and best-in-class operating standards to the ownership and maintenance of these homes.
HPA has a high-quality portfolio of over 17,000 homes across the United States. Its strong and experienced management team is committed to responsible ownership and seeks to provide potential residents flexibility, choice and control when deciding where and how to live. By purchasing homes on behalf of residents, HPA has helped thousands of home seekers live in a home they otherwise are not yet ready to purchase, under terms that best fit their needs. Furthermore, HPA’s program is built on transparency and can provide more optionality while lowering risk for residents as compared to a typical home purchase.
BREIT will support the HPA management team as it explores opportunities to expand access to high-quality housing for lower income households, including by formally launching its Choice Lease® program. Choice Lease is intended to provide a direct and tangible opportunity to help address housing affordability challenges for families across the U.S. Additionally, BREIT is committed to continuing and expanding the financial planning assistance program offered to all residents, free of charge.
Jacob Werner, Blackstone Real Estate Senior Managing Director, said, “The fundamental premise of the HPA platform is to provide residents with the opportunity to live in their chosen home with the option to purchase it—we intend to build on that goal and expand access to homes across the U.S. We look forward to working with HPA’s leadership team to further invest in the properties and continue its role as a valuable resource for people considering home purchases.”
Bill Young, Co-Founder and CEO of HPA, said, “This partnership with Blackstone Real Estate and its consistent support of our business will ensure we are well-positioned to expand the reach of our program to provide access to more homes while also delivering on our commitments to our current residents for the long-term. Our goal has always been to make homeownership a reality for more people, and now we can continue that mission, while providing even more flexibility and services for our residents.”
The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions and approvals.
Goldman Sachs & Co. LLC acted as financial advisor and Sidley Austin LLP and Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal counsel to HPA. BofA Securities and Wells Fargo Securities acted as financial advisors to BREIT and Simpson Thatcher & Bartlett LLP acted as its legal counsel.
About Blackstone Real Estate Income Trust
Blackstone Real Estate Income Trust, Inc. (BREIT) is a perpetual-life, institutional quality real estate investment platform that brings private real estate to income focused investors. BREIT invests primarily in stabilized, income-generating U.S. commercial real estate across key property types and to a lesser extent in real estate debt investments. BREIT is externally managed by a subsidiary of Blackstone (NYSE: BX), a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $196 billion in investor capital under management. Further information is available at www.breit.com.
About Home Partners of America
Chicago-based Home Partners of America, Inc. purchases, owns and operates high-quality single-family rental homes, dedicated to making living in a single-family home accessible for more people. Through their innovative Lease Purchase Program, Home Partners has provided access to single family housing for thousands of households all across the country. Home Partners is a dynamic leader in today's single-family housing market helping home seekers, sellers, and agents meet their various housing needs. Further information is available at https://www.homepartners.com/.