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The Kevin and Fred Show 

Nov 26, 2019

**Blackstone cashes out on Invitation Homes**

Sells off remaining shares in single-family rental operator for $1.7 billion

 

Blackstone’s bet on the single-family rental market is now complete, as it was revealed this week that Blackstone is selling off its remaining shares in Invitation Homes for more than $1.7 billion.

 

In the early part of this decade, Blackstone began pouring money into distressed residential real estate, spending billions to buy up foreclosures and other distressed properties, then turning those houses into single-family rental properties.

 

Blackstone’s move into single-family rentals was conducted through Invitation Homes, which the firm helped grow into one of the nation’s largest single-family rental operators.

Blackstone eventually took Invitation Homes public in 2017, with its initial stock sale raising more than $1.5 billion.

Then, earlier this year, Blackstone began selling off part of its investment in Invitation Homes.

 

 

KW Profit Share Changes

Unofficially, company pushing to change vesting period from 3 years to 7 years and the vesting would be invalid if you move to a competitor. IALC vote forthcoming.

 

 

 

Crowdfunder Nico aims to cut locals in on gentrification returns

 

The public benefit corporation wants to purchase and sell small stakes in rent-stabilized buildings

 

A startup called Nico is putting a social entrepreneurial spin on real estate crowdfunding by buying buildings in gentrifying neighborhoods and then selling small stakes in those buildings to local residents and other investors.

 

The company’s stated goal is to cut residents in on the profits that normally go exclusively to developers while giving these residents a say over how buildings are managed (or redeveloped or sold).

 

Nico expects to launch a fund in the Los Angeles neighborhood of Echo Park in early 2020. It will initially own three rent-stabilized, multi-family buildings in the neighborhood but could expand over time.