What Effect will Blackstone have on real estate in Tampa Bay?

Monday, October 8, 2012, 4:51PM

By: Keith Gordon

For those who have not heard of them, Blackstone is a real estate investment firm with available capital in the range of $50 billion. Reports indicate Blackstone is targeting Pinellas, Hillsborough, Pasco and Polk Counties to acquire 3/2/2 homes in the greater Tampa Bay market from $100,000 to $175,000.

Their goal appears to be a obtaining a portfolio of 15,000 properties or the equivalent of approximately $2 billion worth of Tampa Bay real estate to be rented and managed by Blackstone. With Blackstone seeking these properties, real estate professionals, investors and first-time homebuyers will have to compete with this large investment conglomerate.

Blackstone’s presence in the Tampa Bay real estate market should add market liquidity for 3 bedroom and 2 Bedroom homes. Investors can buy 2 BR homes, which are often discounted against a 3 BR and often overlooked, and convert them to 3 BR homes and feed Blackstone exactly what they are looking for. Once renovation is complete, stay competitive and save money on real estate commissions by listing with GetMoreOffers.com, Tampa Bay’s most trusted flat fee MLS broker.

Blackstone may want a piece of the Tampa Bay pie but they should expect fierce competition from local investors and first time home buyers that have an advantage with First Look Initiatives and other Fannie Mae and Freddie Mac REO programs. Blackstone will face obstacles because they will be competing against a savvy group of buyers, investors and last but not least, the Realtors.

Realtors are aggressive and smart. They will run circles around a few agents working for Blackstone. As well, listing agents that have ties with other in-house and or outside agents will gladly work pocket listings and advance notice to their protected group if need be to make the market fair and fluid.

At the end of the day, Blackstone should add market liquidity to the Tampa Bay real estate market which should help hold our prices firm to higher. Blackstone is good for Tampa Bay real estate, just like flat fee MLS listing in Florida is good competition for full-service agents. Competition makes us all grow stronger.