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Blackstone Hedge Fund Activity In Cook County
The document summarizes a Blackstone Group report on property acquisitions in Cook County between November 2012 and October 2013. It shows that Blackstone acquired 927 properties totaling $588 million, with the majority (58%) acquired from homeowners. It also lists the top US metropolitan areas and Illinois municipalities that were targets for acquisitions and provides data on acquisitions by quarter and area. The report considers options for an exit strategy and ways the public can support fighting illegal evictions.
Blackstone Hedge Fund Activity In Cook County
- 1. Blackstone Group Report PropertyAcquisitions Cook County 11/14/12 – 10/31/13
- 2. Blackstone Group LP(BX) • Real Estate Private Equity Firm • $60 Billion Dollars Of Assets • Goldman Sachs estimates a $2.8 trillion asset class.
- 3. BX Target Areas LosAngeles, CA. Ventura, CA. Tampa, FL. Minneapolis, MN Inland Empire, CA. Las Vegas NV. Orlando, FL. Charlotte, NC. Sacramento, CA. Seattle, WA. Jacksonville, FL. Atlanta, GA. Orange County, CA. Phoenix, AZ. Miami, FL. Chicago, IL.
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- 7. 1st Quarter 2nd Quarter 3rdQuarter 4th Quarter 8% 21% 34% 37% 345 • 110 Homes Per Month • May – October 2013 79 316 194
- 8. Judicial Sales Investors Banks Fannie Mae FreddieMac Homeowners 152 116 67 39 20 533 16% 13% 7% 4% 2% 58%
- 9. Top 5 PropertyAreas AREA 3 AREA 12 AREA 13 AREA 19 AREA 24 57 70 140 53 110
- 10. Area Municipalities Arlington Heights Elmwood Park City Of ChicagoNW City Of Chicago SW Oak Lawn 138 31 28 32 63
- 11. Judicial Sales Investors Banks Fannie Mae FreddieMac Homeowners 41 30 3 3 5 58 29% 21% 2% 2% 4% 42%
- 12. END GAME? • Createan IPO? • R.E.I.T (Equity REIT)? • Sell Homes to another investor? • Sell to tenants? • Lease Backed Securities?
- 13. How You CanSupport • Donate gofundme.com/helpfightillegalevictions • Alternative Housing Initiatives • Expenses (court cost) • Research, Articles & Reports
Editor's Notes
- #2 Blackstone Group LLC (BX), has teamed with principals of Treehouse Group LLC of Tempe, Arizona, and Dallas-based Riverstone Residential Group to bring corporate scale and efficiency to what has historically been a mom-and-pop, single-family-home rental business. Companies such as Blackstone and others are also acquiring homes that qualify for Section 8 subsidized housing. The Blackstone Group (BX) actually purchased 1400 homes via a bulk deal from Fannie Mae in Atlanta. Sixteen percent of the homes were deemed low-income Section 8 housing. Blackstone is not the only investor that has acquired Rent subsidized housing. For instance, Building and Land Technology’s single- family rental business, known as BLT Homes. Its website lists 202 properties; the majority of BLT houses are eligible for rental to tenants with Section 8 vouchers from the U.S. government’s housing assistance program. Delavaco Properties Inc., a Fort Lauderdale, Florida-based investor with 600 single-family rental residences, about 70 percent of which qualify for Section 8. What will become of these homes so desperately needed by families in need of a an affordable home to live in. It is uncertain that these investors won’t sell to the highest bidder if and when prices appreciate. Secondly there will certainly not be any provisions in place restricting the new owners from exiting the section 8 program in favor of market rate income tenants.
- #3 Blackstone Group LLC (BX), has teamed with principals of Treehouse Group LLC of Tempe, Arizona, and Dallas-based Riverstone Residential Group to bring corporate scale and efficiency to what has historically been a mom-and-pop, single-family-home rental business. Companies such as Blackstone and others are also acquiring homes that qualify for Section 8 subsidized housing. The Blackstone Group (BX) actually purchased 1400 homes via a bulk deal from Fannie Mae in Atlanta. Sixteen percent of the homes were deemed low-income Section 8 housing. Blackstone is not the only investor that has acquired Rent subsidized housing. For instance, Building and Land Technology’s single- family rental business, known as BLT Homes. Its website lists 202 properties; the majority of BLT houses are eligible for rental to tenants with Section 8 vouchers from the U.S. government’s housing assistance program. Delavaco Properties Inc., a Fort Lauderdale, Florida-based investor with 600 single-family rental residences, about 70 percent of which qualify for Section 8. What will become of these homes so desperately needed by families in need of a an affordable home to live in. It is uncertain that these investors won’t sell to the highest bidder if and when prices appreciate. Secondly there will certainly not be any provisions in place restricting the new owners from exiting the section 8 program in favor of market rate income tenants.
- #4 Through it’s numerous subsidiaries the Blackstone Group LLC has bought over 40,000 single-family homes in seventeen cities throughout nine states. Blackstone and other firms say they've invented a new investment strategy that also serves the public good by fueling the housing recovery and sprucing up homes. Blackstone's goals are to reduce the inventory of distressed homes on the market, help deflate housing prices, while supplying “affordable” housing for families.
- #5 The mass acquisition of homes throughout cook county and across America by large wall street investors is affecting Americas struggling housing market.Between November 14, 2012 and October 31 , 2013 Blackstone Group LLC (BX) has acquired 927 homes in Cook County. Blackstone’s immediate objective over the next two years is to purchase as many homes in targeted areas across America that have been hardest hit by the foreclosure crisis. The low price of homes and former homeowners needing a home to live in. Make the conditions ripe for investors with billions in capital to spend.
- #7 Blackstone Group LLC (BX) has acquired homes in Cook County through two entities Invitation Homes 2 (IH2) and THR.
- #13 Blackstone Tactical Opportunities have established B2R Finance ("B2R") to provideresidential buy-to-rent mortgages for property investors, focused exclusively on the financing needs of single-family home investors. Riverstone and credit reporting agency, Experian have entered into an agreement last year with Experian Rent, to turn over real time payment history on all of their residents to be compiled into a national database. (Experian RentBureau). Blackstone has joined forces with JP Morgan, Credit Suisse, and Deutsche Bank to bundle the rental payments of 3,207 single-family houses and sell this bond to investors with mortgages on the underlying houses offered as collateral. This is, of course, just a test case for what could become a whole new industry of rental-backed securities.