Cinemas Defy Real Estate Trends, Blackstone Makes Its Largest Multifamily Purchase

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The difference between successful people and very successful people is that very successful people say no to almost everything.

—Warren Buffett

A Surge in the South link

“U.S. migration patterns played a significant role in the South’s population growth. Many people moved to this region, contributing to its overall positive net domestic migration (more people moving in from the rest of the United States than moving out to other parts of the United States). From 2022 to 2023, 28 of the top 30 metro areas with the highest positive domestic migration were in the South.”

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Blackstone Making Its Largest Multifamily Purchase for $10 Billion link

• Blackstone's acquisition of Apartment Income REIT Corp, also known as AIR Communities, for $10 billion is Blackstone’s largest transaction in the multifamily market. The deal involves taking on AIR's existing debt and purchasing all outstanding shares at a premium.

• AIR Communities' portfolio consists of 76 properties in prime coastal markets, indicating Blackstone's focus on upscale, high-income renter markets. More than $400 million is slated for property enhancements post-acquisition.

• The transaction signifies Blackstone's bullish stance on real estate, following a previous $3.5 billion acquisition. These moves underscore Blackstone's confidence in real estate values stabilizing and its commitment to expanding its presence in the multifamily housing market.

Midwest Rent Growth Outperformed U.S. Norm in 2023 link

• The Midwest region's rent growth surpassed the national average in 2023, marking only the fourth occasion since 2007. This achievement underscores the region's resilience and capability to outperform the broader U.S. apartment market during downturns.

• Despite a modest national rent growth of 0.3%, the Midwest experienced a significant increase, with rent prices rising more than 2%. This contrast highlights the Midwest's stronger market conditions and its potential as an attractive investment opportunity.

• Historical data reveals that during periods when the U.S. apartment market struggles, the Midwest tends to excel, averaging a performance premium of about 1.4% over the U.S. norm. This pattern suggests the Midwest's stable apartment industry is a consistent performer, especially in challenging economic times.

Cinemas defy real estate trends 

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That's all, folks.

Cheers,

Vidit

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