According to the company, Blackstone Real Estate has $60 billion in total assets under management and $10 billion in capital available for investments. A portion of these assets, valued at over $5 billion, is made up of 31,000 homes in 13 U.S. markets.
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Though many are focused on the recent rise in home prices, prices are dramatically below 2006 levels in a number of markets, Gray said. "We think they still represent good value, and the supply-demand picture there looks pretty good. We've only been building at about half the rate of obsolescence and population growth in terms of new starts, and that is supporting the value."
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The firm is in the later stages of the investment cycle, Gray said, adding that the single-family housing market should remain bullish for two to four years.
Blackstone's strategy is to isolate key markets for growth, renovate properties (investing about 10 percent of the purchase price on upgrades) and lease them. The houses have a 94 percent occupancy rate. "We're trying to build a long-term business here," he said.
Blackstone Real Estate also invests in commercial properties, which Gray also expects to benefit from lack of product and a stronger economy.