More on the Blackstone Deal

RealEstateJournal What Blackstone Bet Means For Real-Estate Investors:

Personal finance guru Clark Howard is advising to steer clear of REITs because they've become too pricey, but big private equity begs to differ. They obviously think there is more upside in at least one giant office REIT.

"despite a 29% increase in REIT shares so far this year. It also dispels the theory that some real-estate investment trusts are too big to buy out, said Keven Lindemann, real-estate group director at SNL Financial, a research outfit in Charlottesville, Va. "

This group appears to know what they are doing...

"Blackstone's office-sector buying spree is in some respects similar to one it went on in the hotel industry from May 2004 to this February. Blackstone bought into that industry's recovery, taking $8 billion of public hotel companies ($15 billion including debt) private and wagering that revenue per available room and occupancy would rise. So far, the investment has paid off. The hotel industry set a record for profitability in 2005 and is expected to do so again each year through 2008, according to projections by PricewaterhouseCoopers."

I expect this news is making shareholders of Highwoods smile.