Private equity firm KKR acquires student housing from Blackstone Real Estate

On April 25, it was announced that KKR, a private equity firm, has reached an agreement to acquire a collection of 19 student housing properties from Blackstone Real Estate Income Trust for approximately $1.64 billion.The portfolio consists of more than 10,000 beds and includes 19 student housing assets situated in 14 four-year public universities across 10 states.

The diverse range of universities represented in the portfolio ensures a broad appeal to students from various academic disciplines and backgrounds. From bustling urban campuses to serene suburban settings, the student housing assets cater to a variety of preferences and lifestyles.  

Co-head of Americas acquisitions for  Blackstone Real Estate, Jacob Werner said, "This transaction is an excellent outcome for BREIT's investors and demonstrates the strong demand for the high-quality assets."

BREIT, owned by Blackstone, purchased the properties in 2018 through a partnership with Greystar Real Estate Partners.

Blackstone, via its portfolio company American Campus Communities (ACC), holds the title of being the biggest proprietor of student accommodations in the United States. With a vast collection of over 190 properties, ACC boasts an impressive inventory of approximately 140,000 beds.The ACC was acquired by the alternative asset manager in 2022 for a total of $12.8 billion.

With a strong track record of high occupancy rates and positive student feedback, the portfolio is well-positioned to continue serving the growing demand for quality student housing in key university markets. The properties are managed by a dedicated team of professionals who prioritize the safety, comfort, and satisfaction of residents, creating a welcoming and supportive living environment for students to thrive academically and socially.