Blackstone Sells U.S. Bank Center in Seattle for $280M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 25 minutes ago
0mins
Source: seekingalpha
- Significant Price Drop: Blackstone is selling the U.S. Bank Center in Seattle for approximately $280 million, which is a 54% decrease from the $612 million purchase price in 2019, illustrating the ongoing decline in office demand post-pandemic and the impact of rising borrowing costs.
- Office Market Contraction: The firm indicated that traditional U.S. office properties represent less than 1.5% of its portfolio and were effectively written off in 2023, reflecting a pessimistic outlook on this sector.
- Seattle Market Conditions: As of the end of March, one-third of downtown Seattle's offices remain vacant, indicating poor performance in the local office market, although overall demand is rising, particularly in the eastern part of the city where large tenants and AI tech companies are expanding.
- Strategic Shift: Blackstone is reportedly shifting its focus to the eastern part of Seattle, suggesting optimism about future office demand in that area and potential investment opportunities in emerging markets.
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Analyst Views on BX
Wall Street analysts forecast BX stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 116.140
Low
166.00
Averages
176.60
High
205.00
Current: 116.140
Low
166.00
Averages
176.60
High
205.00
About BX
Blackstone Inc. is an alternative asset manager. Its asset management includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds. Its Real Estate segment comprises its management of opportunistic real estate funds, Core+ real estate funds, and real estate debt strategies. Its Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and geographically focused Corporate Private Equity funds, core private equity funds, an investment platform, and others. Its Credit & Insurance segment consists of Blackstone Credit & Insurance, which is organized into three overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset-based credit. Its Multi-Asset Investing segment is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Blackstone Sells U.S. Bank Center in Seattle for $280M
- Significant Price Drop: Blackstone is selling the U.S. Bank Center in Seattle for approximately $280 million, which is a 54% decrease from the $612 million purchase price in 2019, illustrating the ongoing decline in office demand post-pandemic and the impact of rising borrowing costs.
- Office Market Contraction: The firm indicated that traditional U.S. office properties represent less than 1.5% of its portfolio and were effectively written off in 2023, reflecting a pessimistic outlook on this sector.
- Seattle Market Conditions: As of the end of March, one-third of downtown Seattle's offices remain vacant, indicating poor performance in the local office market, although overall demand is rising, particularly in the eastern part of the city where large tenants and AI tech companies are expanding.
- Strategic Shift: Blackstone is reportedly shifting its focus to the eastern part of Seattle, suggesting optimism about future office demand in that area and potential investment opportunities in emerging markets.
See More
Anthropic Secures $36B Debt Financing for AI Infrastructure Expansion
- Massive Financing: Anthropic is seeking approximately $36 billion in debt financing through Apollo Global Management and Blackstone to expand its AI infrastructure, reflecting the company's ambitions and strong market demand in the AI sector.
- Technology Acquisition Plan: The debt will be used to purchase Google's custom chips (TPUs), which Anthropic plans to lease, thereby enhancing its computing power and accelerating the training and deployment of AI models, further solidifying its market position.
- Partner Support: Broadcom, as a partner in chip development, is backstopping payments on the largest parts of the deal, indicating that industry collaboration and resource integration will drive technological advancements and market competition.
- Private Debt Structure: This debt syndication is private, meaning only invited investors can participate, with Apollo and Blackstone planning to sell down some debt while retaining a significant portion, demonstrating confidence in Anthropic's future growth.
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Apollo and Blackstone Drive $36 Billion Debt Financing for Anthropic
- Large Financing Scale: Apollo Global Management and Blackstone are working to raise approximately $36 billion in debt financing for AI startup Anthropic PBC to support its AI infrastructure expansion, indicating strong market interest in the AI sector.
- Custom Chip Procurement: The debt financing will be used to purchase custom chips, with Broadcom backing payments and assisting Google in developing these chips, further solidifying its position in the AI hardware market.
- Investor Participation: Investors are being asked to submit orders this week, with the deal expected to close next week, reflecting high market attention on the transaction and investor confidence in the future of the AI industry.
- Flexible Deal Terms: Although discussions are ongoing, the terms of the deal could still change, highlighting the dynamic and complex nature of the market environment that may influence investor decisions.
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- Rising Default Rates: According to S&P, private credit defaults are expected to increase from 4.4% to 9-10%, primarily driven by the implications of the AI cycle, which may exacerbate risks associated with corporate loans and undermine investor confidence.
- Software Sector Pressure: The software industry accounts for 19% of private credit collateralized loan obligations, and as growth slows and margins compress, the repayment capacity of these loans is expected to be negatively impacted, adding to market uncertainty.
- Liquidity Crisis: With constrained liquidity, investors are beginning to attempt to withdraw funds, particularly with significant withdrawal requests anticipated in June, which could exert further pressure on the market and lead to more default events.
- Pension Fund Risks: While some large state pension funds continue to maintain investments in private credit, their significant risk exposure could have spillover effects on the broader financial markets, especially given that banks have loaned approximately $300 billion to private credit, potentially putting retail investors at risk.
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Anthropic Raises $65 Billion, Surpassing OpenAI Valuation
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- Strong Investor Backing: The funding was led by Altimeter Capital, Dragoneer, Greenoaks, and Sequoia Capital, with additional support from investors like Blackstone and DST Global, reflecting strong market confidence in the AI sector.
- Infrastructure Expansion: Amazon is backing Anthropic's infrastructure expansion with a $5 billion commitment, while chip partners like Micron are providing essential memory and storage capabilities to meet the rising demand for AI technologies.
- Product Upgrade Launch: Anthropic has launched Claude Opus 4.8, which offers improved performance and collaboration capabilities, along with new features that allow users to control the effort Claude puts into tasks, enhancing its competitive edge in the market.
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- Engineer Support: EQT's AI transformation team of approximately 85 members will collaborate with Google engineers to ensure effective deployment and customization of AI technologies, addressing the surging market demand and further bolstering the companies' competitiveness in an AI-driven economy.
- Network Expansion: EQT and its portfolio companies will gain access to Google Cloud's partner network, which includes over 330,000 specialists from consultancies like Accenture, Deloitte, and KPMG, enhancing their technical support capabilities and promoting the implementation of AI solutions.
- Increased Market Opportunities: This collaboration allows EQT's portfolio companies to sell their products on Google Cloud's online store, creating competitive dynamics with other private equity firms like Blackstone and TPG, thereby expanding market opportunities.
See More
Blackstone Sells U.S. Bank Center in Seattle for $280M
- Significant Price Drop: Blackstone is selling the U.S. Bank Center in Seattle for approximately $280 million, which is a 54% decrease from the $612 million purchase price in 2019, illustrating the ongoing decline in office demand post-pandemic and the impact of rising borrowing costs.
- Office Market Contraction: The firm indicated that traditional U.S. office properties represent less than 1.5% of its portfolio and were effectively written off in 2023, reflecting a pessimistic outlook on this sector.
- Seattle Market Conditions: As of the end of March, one-third of downtown Seattle's offices remain vacant, indicating poor performance in the local office market, although overall demand is rising, particularly in the eastern part of the city where large tenants and AI tech companies are expanding.
- Strategic Shift: Blackstone is reportedly shifting its focus to the eastern part of Seattle, suggesting optimism about future office demand in that area and potential investment opportunities in emerging markets.
See More
Anthropic Secures $36B Debt Financing for AI Infrastructure Expansion
- Massive Financing: Anthropic is seeking approximately $36 billion in debt financing through Apollo Global Management and Blackstone to expand its AI infrastructure, reflecting the company's ambitions and strong market demand in the AI sector.
- Technology Acquisition Plan: The debt will be used to purchase Google's custom chips (TPUs), which Anthropic plans to lease, thereby enhancing its computing power and accelerating the training and deployment of AI models, further solidifying its market position.
- Partner Support: Broadcom, as a partner in chip development, is backstopping payments on the largest parts of the deal, indicating that industry collaboration and resource integration will drive technological advancements and market competition.
- Private Debt Structure: This debt syndication is private, meaning only invited investors can participate, with Apollo and Blackstone planning to sell down some debt while retaining a significant portion, demonstrating confidence in Anthropic's future growth.
See More
Apollo and Blackstone Drive $36 Billion Debt Financing for Anthropic
- Large Financing Scale: Apollo Global Management and Blackstone are working to raise approximately $36 billion in debt financing for AI startup Anthropic PBC to support its AI infrastructure expansion, indicating strong market interest in the AI sector.
- Custom Chip Procurement: The debt financing will be used to purchase custom chips, with Broadcom backing payments and assisting Google in developing these chips, further solidifying its position in the AI hardware market.
- Investor Participation: Investors are being asked to submit orders this week, with the deal expected to close next week, reflecting high market attention on the transaction and investor confidence in the future of the AI industry.
- Flexible Deal Terms: Although discussions are ongoing, the terms of the deal could still change, highlighting the dynamic and complex nature of the market environment that may influence investor decisions.
See More
Private Credit Defaults Expected to Rise to Record Levels
- Rising Default Rates: According to S&P, private credit defaults are expected to increase from 4.4% to 9-10%, primarily driven by the implications of the AI cycle, which may exacerbate risks associated with corporate loans and undermine investor confidence.
- Software Sector Pressure: The software industry accounts for 19% of private credit collateralized loan obligations, and as growth slows and margins compress, the repayment capacity of these loans is expected to be negatively impacted, adding to market uncertainty.
- Liquidity Crisis: With constrained liquidity, investors are beginning to attempt to withdraw funds, particularly with significant withdrawal requests anticipated in June, which could exert further pressure on the market and lead to more default events.
- Pension Fund Risks: While some large state pension funds continue to maintain investments in private credit, their significant risk exposure could have spillover effects on the broader financial markets, especially given that banks have loaned approximately $300 billion to private credit, potentially putting retail investors at risk.
See More
Anthropic Raises $65 Billion, Surpassing OpenAI Valuation
- Record Funding Round: Anthropic raised $65 billion in its latest Series H funding round, achieving a post-money valuation of $965 billion, more than doubling its previous valuation of $380 billion in February, thus becoming one of the world's most valuable private companies.
- Strong Investor Backing: The funding was led by Altimeter Capital, Dragoneer, Greenoaks, and Sequoia Capital, with additional support from investors like Blackstone and DST Global, reflecting strong market confidence in the AI sector.
- Infrastructure Expansion: Amazon is backing Anthropic's infrastructure expansion with a $5 billion commitment, while chip partners like Micron are providing essential memory and storage capabilities to meet the rising demand for AI technologies.
- Product Upgrade Launch: Anthropic has launched Claude Opus 4.8, which offers improved performance and collaboration capabilities, along with new features that allow users to control the effort Claude puts into tasks, enhancing its competitive edge in the market.
See More
EQT Partners with Google Cloud to Accelerate AI Adoption
- Access to AI Tools: EQT's partnership with Google Cloud enables over 300 portfolio companies to access AI tools, including the Gemini Enterprise Agent platform, facilitating AI adoption across sectors like enterprise software and healthcare, thereby enhancing operational efficiency and market competitiveness.
- Engineer Support: EQT's AI transformation team of approximately 85 members will collaborate with Google engineers to ensure effective deployment and customization of AI technologies, addressing the surging market demand and further bolstering the companies' competitiveness in an AI-driven economy.
- Network Expansion: EQT and its portfolio companies will gain access to Google Cloud's partner network, which includes over 330,000 specialists from consultancies like Accenture, Deloitte, and KPMG, enhancing their technical support capabilities and promoting the implementation of AI solutions.
- Increased Market Opportunities: This collaboration allows EQT's portfolio companies to sell their products on Google Cloud's online store, creating competitive dynamics with other private equity firms like Blackstone and TPG, thereby expanding market opportunities.
See More
