Blackstone bets $10B on multifamily; Florida passes a slew of pro-development laws, contrary to New York … and more

THE RUNDOWN:

?? Multifamily has seen both ups and downs in recent years. But that hasn’t scared off Blackstone. The investment giant paid $10 billion for AIR Communities, giving the firm more than 27,000 apartments across 10 states.?

?? As some states — cough New York cough — struggle to pass any meaningful housing policies, Florida has wrapped up its legislative session with a handful of pro-development bills.?

?? The nonprofit Food First is looking to offload a portfolio of NYC affordable housing properties. The problem? The buildings have become “a liability.”

?? The biggest names in Los Angeles real estate got together to discuss the impact of NAR’s groundbreaking settlement. The one thing they all agreed on: change is coming.?

?? Newmark is suing Accesso Partners for failing to pay fees tied to a property tax appeal. But the brokerage giant is just one of several firms claiming the major Chicago office landlord owes them money.?

?? San Francisco’s office market may be down bad, with availability pushing 40 percent. But an uptick in demand has become the first sign of life.

THE DETAILS:

?? Blackstone bets $10B on multifamily

The world’s largest alternative asset manager has gone all-in on multifamily with its recent $10 billion acquisition of AIR Communities.?

• The purchase will give Blackstone a portfolio of 27,000 rental units across 10 states, including more than 8,000 in California alone.?
• AIR is a publicly traded REIT. But Blackstone will take it private after the acquisition closes next quarter.?
• The investment giant agreed to pay $39.12 per share, a 25 percent premium on the REIT’s most recent price.?
• Apartment stocks surged in the hours following the deal’s announcement.

?? Apples and oranges: Florida passes a slew of pro-development laws, contrary to New York

Florida wrapped up its legislative session last month, approving a $117.5 billion state budget and passing several pro-development bills.?

• The bills cracked down on squatters, overrode tenant protections and made it easier to demolish coastal properties.
• This comes on the heels of the Live Local Act, a bipartisan bill that incentivizes housing development throughout much of the state.?

The legislature’s success stands in stark contrast to New York, where issues around housing have become sticking points as the state struggles to get a budget passed.??

?? Nonprofit to auction off 20 rent-stabilized buildings

A Brooklyn-based nonprofit has said it can’t afford to hold on to a portfolio of affordable housing buildings in New York.?

• Food First is looking to sell 20 buildings across Brooklyn and the Bronx, claiming that the properties have become a liability due to backlogs in rent.?
• The nonprofit landlord was ranked among the “worst” landlords in the city last year, after it racked up more than 1,300 violations.

?? Beverly Hills brokers make sense of NAR settlement

NAR’s recent settlement of antitrust lawsuits is set to shake up the residential world. But how severe will the changes be? A panel of California superbrokers couldn’t agree on an answer.??

• They forecasted huge changes for the industry, especially surrounding the new requirement for buyers to sign an agreement with their broker.?
• While another panelist stood on the other side, arguing that his business wouldn’t change much.?

?? Newmark sues Accesso for stiffing it on Loop property tax appeals

Office landlord Accesso Partners is facing a growing list of firms that claim it owes them money. Now, that list includes the brokerage giant Newmark.???

• Newmark alleges that Accesso failed to pay $876,000 in fees for work it did for the Florida-based landlord.?
• Accesso is also facing foreclosure at a handful of Chicago-area office properties. Its lender claims it is delinquent on $126 million in debt tied to the buildings.?

?? SF office market shows first signs of turning the corner

Few cities have seen their office markets ravaged near as bad as San Francisco’s.

• Direct office vacancy in the city sits at 36.7 percent. With subleases included, that number jumps to 39 percent.?
• But the city saw a spike in demand in the first quarter, with 6 million square feet of tenant requirements, the highest number since the first quarter of 2020.

THE CLOSE:?

Will Blackstone’s big bet pay off? Keep reading TheRealDeal.com to find out.