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Taxpayers May Be Funding Billionaires' Biggest Apartment Deals

  • Freddie Mac providing cheap loans in U.S. lending boost
  • Blackstone said to seek financing for Stuyvesant Town deal
Source: Getty Images

Who do billionaires turn to when they want to buy apartment complexes? The U.S. taxpayer.

Barry Sternlicht’s Starwood Capital Group and Stephen Schwarzman’s Blackstone Group LP are in talks with Freddie Mac to finance two transactions totaling more than $10 billion, according to people with knowledge of the negotiations. Those discussions come after the government-owned mortgage giant already agreed to back Lone Star Funds’ $7.6 billion deal to buy Home Properties Inc. and Brookfield Asset Management Inc.’s $2.5 billion takeover of Associated Estates Realty Corp.