{"id":1004165787,"date":"2017-02-02T04:16:02","date_gmt":"2017-02-02T12:16:02","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004165787"},"modified":"2022-12-08T19:36:02","modified_gmt":"2022-12-09T03:36:02","slug":"blackstones-invitation-homes-raises-1-5b-in-ipo","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/","title":{"rendered":"Blackstone\u2019s Invitation Homes Raises $1.5B in IPO"},"content":{"rendered":"

By Scott Baltic, Contributing Editor<\/p>\n

Dallas<\/strong>\u2014The initial public offering by Invitation Homes Inc. was priced at $20.00 per share for the 77 million shares being offered, the company announced Tuesday, giving the offering a total value of more than $1.5 billion.<\/p>\n

\"John<\/a>

John Bartling Jr., president & CEO, Invitation Homes<\/p><\/div>\n

And in an auspicious sign, on Wednesday morning, the first time that INVH stock traded on the NYSE, the share price opened at $20.10, according to The Wall Street Journal<\/em>.<\/p>\n

The offering is expected to close next Monday, Feb. 6, subject to customary conditions. The REIT, which will remain predominantly owned by Blackstone Group LP, has granted the underwriters a 30-day option to purchase up to a further 11.55 million shares at the IPO price, less underwriting discounts.<\/p>\n

Invitation Homes, which was founded by Blackstone in 2012, reportedly intends to use the IPO\u2019s net proceeds, together with borrowings under an anticipated new term loan facility, to repay existing indebtedness and to pay fees and expenses related to the offering.<\/p>\n

In the 12 months ending Sept. 30, 2016, Invitation generated $905 million in total revenues and increased net effective rental rates on leases signed in that period\u2019s final quarter by 6.1 percent over the prior lease rates, according to an SEC Form S-11 filed on Jan. 6.<\/p>\n

The typical Invitation property is a three-bedroom, two-bath home of about 1,850 square feet and a monthly rent of about $1,623 as of the third quarter. Such a property, according to Invitation, appeals to \u201ca resident base that we believe is less transitory than the typical multifamily resident.\u201d<\/p>\n

The REIT has invested a total of about $1.2 billion (about $25,000 per home on average) in renovating the homes in its portfolio, to help reduce ongoing maintenance costs and drive resident demand, thus boosting occupancy and cutting turnover.<\/p>\n

The portfolio consists of nearly 50,000 homes for lease concentrated in infill submarkets in 13 metro markets nationwide: Atlanta, Charlotte, Chicago, Jacksonville, Las Vegas, Los Angeles\/Inland Empire, Miami, Minneapolis, Orlando, Phoenix, Sacramento, Seattle and Tampa.<\/p>\n

For prospective residents (the company appears not to like the word \u201ctenants\u201d), Invitation touts high-quality property management, a wide selection of homes in desirable neighborhoods, recent renovations to all of its homes, a proactive maintenance program plus 24\/7 emergency maintenance, a pet-friendly environment and a \u201cFirst Look\u201d program that facilitates home sales to current residents.<\/p>\n

An Invitation video claims that residents can \u201cenjoy the lifestyle that home ownership provides without the financial burden.\u201d<\/p>\n

While Invitation has over time sold about 2,500 homes that did not meet its long-term investment criteria, the REIT also remains ready to acquire additional properties in its target markets, again according to the SEC filing.<\/p>\n","protected":false},"excerpt":{"rendered":"

The REIT\u2019s portfolio consists of nearly 50,000 residences for lease concentrated in infill neighborhoods across the U.S. <\/p>\n","protected":false},"author":882,"featured_media":1004165789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,21783,23891,21742],"tags":[32892,33797,33798],"class_list":["post-1004165787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-investment","category-national","category-latest","tag-blackstone","tag-invitation-homes","tag-john-bartling"],"acf":[],"yoast_head":"\nBlackstone\u2019s Invitation Homes Raises $1.5B in IPO - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blackstone\u2019s Invitation Homes Raises $1.5B in IPO\" \/>\n<meta property=\"og:description\" content=\"The REIT\u2019s portfolio consists of nearly 50,000 residences for lease concentrated in infill neighborhoods across the U.S.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2017-02-02T12:16:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T03:36:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/02\/John-Bartling-Jr..jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/\",\"name\":\"Blackstone\u2019s Invitation Homes Raises $1.5B in IPO - 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He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Blackstone\u2019s Invitation Homes Raises $1.5B in IPO - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/","og_locale":"en_US","og_type":"article","og_title":"Blackstone\u2019s Invitation Homes Raises $1.5B in IPO","og_description":"The REIT\u2019s portfolio consists of nearly 50,000 residences for lease concentrated in infill neighborhoods across the U.S.","og_url":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2017-02-02T12:16:02+00:00","article_modified_time":"2022-12-09T03:36:02+00:00","og_image":[{"width":800,"height":600,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/02\/John-Bartling-Jr..jpg","type":"image\/jpeg"}],"author":"Scott Baltic","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/","url":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/","name":"Blackstone\u2019s Invitation Homes Raises $1.5B in IPO - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/02\/John-Bartling-Jr..jpg","datePublished":"2017-02-02T12:16:02+00:00","dateModified":"2022-12-09T03:36:02+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/02\/John-Bartling-Jr..jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/02\/John-Bartling-Jr..jpg","width":800,"height":600,"caption":"John Bartling Jr., president & CEO, Invitation Homes"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/blackstones-invitation-homes-raises-1-5b-in-ipo\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Blackstone\u2019s Invitation Homes Raises $1.5B in IPO"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. 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