- Blackstone is shutting down its Home Partners subsidiary and transferring the business to Tricon Residential, acquired for $3.5B in 2024.
- The move will result in the closure of Home Partners’ Chicago HQ and the layoff of 179 employees as part of a broader restructuring.
- Home Partners was acquired by Blackstone in 2021 for $6B, adding 17K homes to the firm’s rental portfolio.
- The shutdown follows criticism of Home Partners’ rent-to-own program, which had a low conversion rate and faced scrutiny over evictions.
In a significant restructuring move, Blackstone (BX) is shutting down Home Partners of America, the single-family rental subsidiary it acquired in 2021 for $6B, according to The Real Deal.
Winding Things Down
The company, which expanded rapidly in the rent-to-own market, will close its Chicago headquarters and lay off 179 employees.
These changes are part of Blackstone’s strategy to integrate Home Partners into Tricon Residential, another Blackstone subsidiary acquired for $3.5B in early 2024.
Transition to Tricon
Tricon Residential will take over management of all Home Partners leases and lease-purchase agreements, with no changes expected for current tenants.
Tricon will honor Home Partners’ rent-to-own program, which aimed to provide an alternative path to homeownership for those unable to secure traditional mortgages.
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Despite the transition, Blackstone emphasized that tenants will still be able to walk away without penalties if they do not purchase the homes.
Criticism and Closures
Home Partners faced significant criticism regarding its rent-to-own program, especially after a 2023 study found that fewer than a third of the homes analyzed were successfully sold to original tenants.
Some residents were evicted, and their homes were sold to traditional buyers instead, raising concerns about the program’s fairness and the company’s practices.
Looking Ahead
The closure of Home Partners marks a notable shift for Blackstone, which has focused on different real estate sectors, such as the office market in Chicago, where it is managing a loan for a struggling office tower at 444 North Michigan Avenue.
As Blackstone moves forward with its realignment, it remains to be seen how the shift to Tricon will impact the single-family rental space, particularly amid ongoing scrutiny of the rent-to-own model.
