Private-equity and financial services firm the Blackstone Group is set to buy a collection of 16 office buildings for approximately $800 million, The Wall Street Journal reports. At present, a Morgan Stanley real-estate fund owns the distressed portfolio of properties spread across six U.S. cities. The fund acquired these buildings along with other real estate when it bought Glenborough Realty Trust in 2006.

The buyout group already holds junior debt worth $225 million on the Glenborough Properties. This allows Blackstone to take over the buildings as well as the balance loans of approximately $600 million. It is now seeking credit to fund the purchase of this real estate.

Click here for the story from The Wall Street Journal.