03:31 PM EST, 11/07/2025 (MT Newswires) -- Blackstone (BX) is offloading a $1.8 billion senior housing portfolio at steep losses after the investment underperformed, the Wall Street Journal reported Friday, citing public records and people familiar with the matter.

The firm has sold about 70 of the roughly 90 properties since 2022, often at more than 70% below the original purchase price, the report added.

According to the Journal's review, 39 properties bought for over $755 million were or are being sold for around $536 million, reflecting a 29% decline in value.

Five properties reportedly sold for less than the outstanding loan amounts, and more than a dozen were cited for care-related deficiencies by regulators.

Rising interest rates and labor costs, coupled with floating-rate debt, pushed many of the properties into financial trouble, including two dozen loans that went into special servicing earlier this year.

"These properties sit in a $33.5 billion fund that has nearly doubled investors capital," Blackstone said in a statement to MT Newswires. "These properties, like much of the senior housing sector, were significantly impacted by COVID."

"Importantly, Blackstone's commitment to residents and the frontline workers who care for them has never wavered, as evidenced by over $100 million in improvements and operational investments made to these communities," Blackstone added in its statement.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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