Blackstone’s Flips Equity Office Properties At An Amazing Speed
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
When Blackstone purchased Equity Office from Sam Zell people knew that some of the properties would be flipped. What is amazing Wall Street and the commercial real estate community is the speed in which these transactions are occurring. In the 6 months since the deal was announced, Blackstone has sold nearly half of the properties that they purchased in the deal for Equity Office recouping 70 percent of their initial investment.
Typically in big commercial real estate buyouts the properties that are initially sold are the weaker ones. Instead, Blackstone seeing the roaring hot commercial market, they are selling the higher end properties for a huge profit.
Who said the days of flipping real estate are over for a while…
According to data provided by CoStar Group, which tracks the transactions by building, 261 buildings, or 48%, of the 543 buildings that EOP held in February have now been sold.
The mammoth transaction secured the reputation of Jonathan Gray, 37 years old, senior managing director of Blackstone Group, as a young deal maker when he faced down Steven Roth’s Vornado Realty Trust to win a bidding war for Equity Office, a Chicago real-estate investment trust.
Mr. Gray’s signature was to swoop in with certainty and speed, biting off big chunks of real estate while industry investors debated valuations and pored over due diligence documents. It was a style he refined as he took private two large office REITs, CarrAmerica Realty Corp. and Trizec Properties Inc., and then executed in taking down Equity Office. via WSJ.com.
Although I agree on most points, I would like to point out that most of the banks that are being ...
The question is when are they going to release them on the market. Las Vegas leads the nation in ...
I keep seeing mentions of Florida's market getting better in multiple blogs. I'm increasingly under the assumption that at least ...
I would like to know more about it. I need to know how you file for it. Please let me ...
Great blog, keep the great content coming! 
If you want to succeed, do not say "we can prevent this in the future." Live in reality. ...
The price of the property depends on its quality and the deal between the management. Good and wise choices are ...
I don't have experience at actualy working in tha automotive bussinnes, but have experience working in a warehouse invironment. ...
Pingback by Flipping is Not Over…at least for the Blackstone Group on 29 July 2007:
[...] You can read more about the deal and Blackstone’s flipping strategy at therealestatebloggers.com [...]
Pingback by Blackstone Effect on Commercial Real Estate Sales — The Real Estate Bloggers on 20 August 2007:
[...] is rising in the country partially because of a ripple being named the Blackstone Effect. When Blackstone purchased Equity Office Properties they immediately started selling off many of the properties. This put properties on the market that [...]