KKR Agrees to Purchase $1.64 Billion Student Housing Portfolio from BREIT

KKR and Blackstone Real Estate Income Trust, Inc. (“BREIT”) have entered into a definitive agreement, with funds managed by KKR set to acquire a portfolio comprising 19 purpose-built student housing properties from BREIT for about $1.64 billion.

This portfolio, comprising over 10,000 beds, is strategically located across 14 leading four-year public universities spanning 10 states. The properties offer a range of premium amenities and convenient pedestrian access to campus. BREIT initially acquired this portfolio in 2018 through a joint venture with Greystar Real Estate Partners, LLC (“Greystar”).

Justin Pattner, Partner at KKR and Head of Real Estate Equity in the Americas, expressed confidence in the long-term prospects of the student housing sector. He noted, “We are pleased to collaborate with Blackstone on this transaction, adding a diverse mix of high-quality properties to our portfolio. Our operational expertise and ability to transact at scale enable us to create value for our investors and enhance living experiences in these communities.”

Jacob Werner, Co-Head of Americas Acquisitions for Blackstone Real Estate, emphasized the transaction’s benefits for BREIT’s investors, citing strong demand for high-quality assets in desirable markets. He highlighted Blackstone’s ongoing commitment to student housing through BREIT’s platform, American Campus Communities, the largest owner of student housing in the U.S.

Upon completion, the portfolio will be overseen by University Partners, a leading owner and operator of student housing nationwide. KKR launched University Partners in 2016 to capitalize on attractive real estate sectors and has since expanded its reach and capabilities.

Travis Roberts, Chief Executive Officer of University Partners, underscored the portfolio’s quality and scale, anticipating growth opportunities in both familiar and new markets. He emphasized the positive outlook for student housing in top university markets, driven by enrollment growth and limited new supply.

Blackstone, primarily through its subsidiary American Campus Communities (ACC), maintains a significant presence in the student housing sector, with plans for further expansion and new community developments.

The transaction is slated to close by the third quarter of 2024, subject to customary conditions. KKR’s investment in this portfolio primarily stems from its KKR Real Estate Partners Americas III fund.

---

If you are a proptech company and want to promote your products for free, go to proptechbuzz.com and submit your products. For investors or proptech buyers, sign up on our platform to stay informed about exciting updates and trends in the Proptech Ecosystem.

Explore more Proptech news at proptechbuzz.com/news, for news tips and promotions, reach out to marketing@proptechbuzz.com.