Blackstone struck a roughly $10 billion deal for an apartment landlord— the latest sign that the giant real estate investor sees this as a ripe moment to pour money into the property market. Blackstone agreed to acquire Apartment Income REIT—known as AIR Communities—in an all-cash deal for $39.12 a share—a 25% premium from the company’s closing share price on Friday. Blackstone says it plans to invest more than $400 million to maintain and bolster the company’s apartment portfolio. The apartment market has come under pressure in recent months as owners confront higher borrowing costs and falling valuations. But the deal may signal that the landscape is about to change.
Wells Fargo Securities’ Christopher Harvey just put Wall Street’s highest target on the S&P 500 Index for 2024 based on his expectation that the US equity rally will continue through the year. Harvey, the firm’s head of equity strategy, lifted his year-end forecast on the benchmark to 5,535 from 4,625 previously, making him the biggest bull among strategists tracked by Bloomberg. The growth potential from artificial intelligence technology and an improved earnings outlook are among the upside catalysts he sees, along with longer time horizons and higher valuation thresholds from investors.