The top five fund managers – Blackstone,
Brookfield,
Prologis,
PGIM and
Nuveen –
have all maintained their positions in 2022. The top 10 reported total real estate allocations of above US$100 billion, with the largest player Blackstone crossing the US$500 billion mark after increasing its total AUM by over US$33 billion.
The combined AUMs of the top four managers account for almost 27% of the total real estate capital in this year's survey.
Real estate remains a key institutional asset class, with global assets under management standing at US$4.1 trillion, a new survey finds. The average AUM per manager rose 10% to US$35.7 billion in 2022, from US$32.5 billion in the previous year.- List of asset management firms
- List of private-equity firms
- Private equity real estate
- Real estate investment trust
- AEW Capital Management
- Angelo Gordon
- Apollo Global Management
- Ares Management
- Bain Capital
- Barings LLC
- Beacon Capital Partners
- BentallGreenOak
- Blackstone Inc.
- Bridge Investment Group
- Brookfield Asset Management
- Cadillac Fairview
- CBRE Investment Management
- Centerbridge Partners
- Cerberus Capital Management
- CIM Group
- Clarion Partners
- Cohen & Steers
- Enterprise Community Partners
- Equity International
- Fortress Investment Group
- Greystar Real Estate Partners
- Harbert Management Corporation
- Heitman LLC
- HIG Realty Partners
- Hines
- Ivanhoé Cambridge
- JRK Property Holdings
- Kennedy Wilson
- KKR
- LaSalle Investment Management
- Lone Star Funds
- MCR Hotels
- Nuveen Real Estate
- Oak Street Capital
- Oaktree Capital Management
- Oxford Properties
- PineBridge Benson Elliot
- Pretium Partners
- QuadReal Property Group
- Rithm Capital
- Rockpoint Group
- Sculptor Capital Management
- Southwest Value Partners
- Starlight Investments
- Starwood Capital Group
- StepStone Group
- Stockbridge Capital Group
- The Carlyle Group
- Tishman Speyer
- TPG
- Tricon Residential
- Walton Street Capital
- Warburg Pincus
Back in 2019, Blackstone pulled back from the single-family housing market, selling off its shares of Invitation Homes, which Blackstone had used in the years following 2012 to gobble up homes for dirt cheap prices following the housing crash.
At the time, the Wall Street Journal proclaimed that “Blackstone has closed the door on its giant rental-home gambit.”
Only the “door” wasn’t closed.
In June 2021, Blackstone Real Estate Income Trust was ready to jump back into the single-family space with its $6 billion purchase of Home Partners of America, which at the time owned 17,000 U.S. homes. And this January, Blackstone announced it is acquiring single-family rental giant Tricon Residential for $3.5 billion.
Where does the latest move to acquire Tricon Residential place Blackstone in the institutional landlord hierarchy? And, in which housing markets will Blackstone be the most concentrated?
According to Parcl Labs’ proprietary database, once Blackstone completes its Tricon Residential acquisition, it will have the third-largest U.S. single-family portfolio (61,964 U.S. single-family homes), behind Progress Residential (83,502 single-family homes) and Invitation Homes (81,716 single-family homes).
Most of that 61,964 U.S. single-family home portfolio comes from Tricon Residential (35,448 single-family homes), while the rest are held by Home Partners of America (26,516 single-family homes), according to Parcl Labs.
According to Parcl Labs: Once the Tricon deal is complete, Blackstone’s single-family rental portfolio will be most concentrated in the following 5 housing markets:
- Atlanta: 11,144 homes (7,104 Tricon; 4,040 Home Partners of America)
- Dallas: 5,172 homes (2,922 Tricon; 2,250 Home Partners of America)
- Charlotte: 4,710 homes (3,986 Tricon; 724 Home Partners of America)
- Tampa: 3,949 homes (2,365 Tricon; 1,584 Home Partners of America)
- Phoenix: 3,801 homes (2,863 Tricon; 938 Home Partners of America)
Those housing markets have some of the highest levels of institutional homeownership in the country. The reason is that their favorable demographics and rental growth have attracted big single-family investors, according to Parcl Labs.
While a portfolio of 61,964 homes isn't small, in the grand scheme of the U.S. housing market, which has over 82 million single-family homes, it might not be as large as it initially sounds.
On a national level, institutional homebuyers—firms owning at least 1,000 homes—own around 1% of the total U.S. single-family stock, according to Parcl Labs.
