NEW YORK CITY—Continuing to make inroads into the multifamily sector, the Blackstone Group has agreed to acquire a 32-property, 10,399-unit multifamily portfolio from Greystar Real Estate Partners for $2 billion. The sale to Blackstone Real Estate Partners VIII is being consummated via Greystar Equity Partners VII, whose investments are now fully monetized.

"We worked diligently to assemble a high-quality portfolio of well-located apartment communities in major institutional markets," says Bob Faith, Greystar's chairman and CEO. "We are very pleased with the outcome of the transaction and believe the level of interest this portfolio generated is a testament to our core competency of sourcing underperforming assets and creating value through operational improvements and comprehensive capital renovation strategies."

Comprising a mix of mid-rise, high-rise and garden-style apartment buildings, the portfolio is nationally diversified with assets located in high-barrier-to-entry markets. Markets covered by the portfolio include the Seattle, San Francisco, Los Angeles, South Florida, New York, and Boston metro areas.

A $600-million commingled fund, GEP VII was formed as part of Greystar's flagship value-add acquisition fund series. The fund held its final close in 2011 with commitments from a diverse group of global institutional investors. In June 2014, Greystar announced the final close of Greystar Equity Partners VIII, an $800-million successor fund that is now fully invested.

The transaction was competitively bid with HFF acting on Greystar's behalf. Greystar will continue to serve as property manager for the portfolio.