The rapid rise in interest rates has pressured real estate returns, prompting big asset managers to explore financial tactics to maintain liquidity and command high prices.In the recent student housing sale between KKR & Co. (KKR), the buyer, and BREIT, the seller, Blackstone offered $800M in low-rate debt, coupled with below-market financing. This helped KKR secure the properties in time for a crucial shareholder call. BREIT also earned a 7% premium on the sale.
Source: Blackstone Sweetens Student Housing Deal With Seller Financing – CRE Daily
