Blackstone Real Estate Income Trust (BREIT) has announced a definitive agreement to acquire Home Partners of America (HPA) for a substantial $6.0 billion, marking a significant move in the single-family rental market. This acquisition underscores the growing importance of innovative housing solutions like those offered by Home Partners, which focuses on expanding housing access and providing a unique pathway to homeownership for families across the United States. BREIT’s long-term capital and Blackstone’s extensive experience in residential properties are set to propel Home Partners‘ mission further, ensuring responsible property management and enhanced living standards for residents.
Understanding Home Partners of America and the Acquisition
Home Partners has established itself as a leader in creating flexible and accessible routes to single-family home living. With a portfolio of over 17,000 high-quality homes across the nation, the company operates on a resident-led model that prioritizes choice and control for individuals and families seeking a home. By purchasing homes on behalf of residents, Home Partners enables individuals to live in desirable properties who may not yet be ready for traditional homeownership. This model emphasizes transparency and optionality, offering a lower-risk approach compared to the complexities of a conventional home purchase.
This acquisition by BREIT signals a strong endorsement of Home Partners‘ vision and operational success. Blackstone’s commitment to responsible investing and resident support aligns perfectly with Home Partners‘ core values. Jacob Werner, Blackstone Real Estate Senior Managing Director, highlighted the shared vision, stating, “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.” This partnership promises to strengthen Home Partners‘ ability to serve a broader range of residents and enhance its service offerings.
Expanding Housing Accessibility with Choice Lease® and Financial Support
BREIT’s support will empower Home Partners to explore new avenues for enhancing housing accessibility, particularly for lower-income households. A key initiative in this direction is the formal launch of the Choice Lease® program. This program is specifically designed to address housing affordability challenges, offering a tangible pathway for families to access quality housing. Furthermore, BREIT is committed to expanding the financial planning assistance program currently available to all Home Partners residents, free of charge. This demonstrates a holistic approach to resident well-being, going beyond just providing housing to supporting financial literacy and stability.
Bill Young, Co-Founder and CEO of Home Partners, expressed enthusiasm about the collaboration, “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.” This partnership is poised to amplify the positive impact of Home Partners in the housing market, making homeownership dreams more attainable for a wider population.
Transaction Details and Future Outlook for Home Partners
The acquisition, valued at $6.0 billion, is anticipated to finalize in the third quarter of 2021, pending standard closing conditions and regulatory approvals. This transaction involved leading financial and legal advisors, with Goldman Sachs & Co. LLC and Sidley Austin LLP advising Home Partners, and BofA Securities and Simpson Thacher & Bartlett LLP advising BREIT.
This acquisition marks an exciting chapter for Home Partners of America. By joining forces with Blackstone Real Estate Income Trust, Home Partners is set to enhance its operational capabilities, expand its reach, and further solidify its position as a leader in innovative housing solutions. The focus remains firmly on providing accessible, high-quality housing and a clear path to homeownership, making the dream of a single-family home a reality for more Americans.
About Blackstone Real Estate Income Trust
Blackstone Real Estate Income Trust, Inc. (BREIT) is a perpetual-life real estate investment platform managed by Blackstone, a global leader in real estate investing. BREIT focuses on stabilized, income-generating U.S. commercial real estate and real estate debt investments. With a substantial portfolio and Blackstone’s expertise, BREIT brings private real estate investment opportunities to income-focused investors.
About Home Partners of America
Home Partners of America, Inc. is dedicated to making single-family home living accessible to more people. Through its Lease Purchase Program, Home Partners offers a transparent and flexible route to living in a single-family home, with an option to purchase. Based in Chicago, Home Partners is committed to serving home seekers, sellers, and agents in the single-family housing market.
