Blackstone Continues Focus on Single Family Homes with $1.6B Acquisition of InteriorLogic

This deal is the latest in a string of single-family housing market investments for the private equity giant.

In a deal worth approximately $1.6 billion, Blackstone will acquire Interior Logic Group, an interior design, supply chain, and installation management solutions provider for single-family homebuilders.

Blackstone reached an agreement with Littlejohn & Co., Platinum Equity and other equity holders earlier this week to acquire ILG, which operates across 37 states and helps facilitate the completion of nearly 100,000 homes per year.

“ILG’s technology, relationships and purpose position it very well in the single-family real estate value chain,” said Vikram Suresh, a managing director at Blackstone in prepared remarks.  “We look forward to partnering with ILG’s leadership team and providing Blackstone’s operational resources and expertise to support ILG, its homebuilder customers and prospective homeowners.”

The investment in Interior Logic Group comes as homebuilders are increasing investment in the single-family rental housing market, which is rapidly heating up as the costs of homeownership remain out of reach in many US cities. Last month, Bloomberg reported that Lennar Corp. was seeking to raise $2 billion to develop thousands of single-family rental homes, citing unnamed sources.

The deal also expands Blackstone’s streak of investing in and exposure to the single-family housing market. In 2017, the firm backed an IPO for single-family rental operator Invitation Homes, a position it exited two years later at $7 billionmore than twice its original investment. Last year, it reentered the space with a $300 million stake in Tricon Residential, which owns and manages more than 30,000 single-family and multifamily rental homes in the US and Canada. 

“We continue to see strong underlying fundamentals in the rental-housing sector, and believe the company’s high-quality, income-generating assets are poised to generate stable performance under the leadership of its best-in-class management team,” Frank Cohen, chief executive officer of BREIT, Blackstone’s investment vehicle, said at the time.