Cash In On Record Rent Prices With This Undervalued Firm

In many cities, the influx of new residents is outpacing the construction of new apartments. There just isn't any space to build in downtown Chicago or Boston, yet rental demand is climbing 6% to 7% annually. That leads to a shortage of available units, which inevitably exerts upward pressure on prices. U.S. rents have reached another all-time high in 2016. The rental model can work when done properly, but it requires a tremendous amount of capital and experience. This company's exposure to the real estate market makes it an easy way to get the benefits of rising rents without the risk of high upfront costs.

Blackstone Group (BX) is the largest private equity firm on Wall Street and the largest private real-estate investor in the U.S. Blackstone owns 144 million square feet of office space, 284,000 hotel keys, 116,000 multifamily units, and more than 30,000 single-family homes. Although Blackstone specializes in real estate, it also operates in distressed debt, hedge fund solutions, and financial advisory. In 2009, during the height of the financial crisis, Blackstone made a bold prediction. While uncertainty reigned across the economy, Blackstone correctly predicted that the slumping U.S. real estate market would rebound. By the end of the year, Blackstone kicked off a real-estate buying binge, investing more than $62 billion since the financial crisis into local markets across the country.

Source: Seeking Alpha

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