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Blackstone REIT Buys Industrial Portfolio for $358 Million in Sale-Leaseback

Blackstone Real Estate Income Trust, a publicly registered non-traded REIT, has purchased a portfolio of 13 industrial facilities for $358 million.

Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), has purchased a portfolio of 13 industrial facilities for $358 million from Iron Mountain (NYSE: IRM), a publicly traded firm focused on storage and information management services.

The transaction, totaling 2.1 million square feet, is a sale-leaseback transaction with the properties located predominantly in California, northern New Jersey and the Lehigh Valley, which is one hour north of Philadelphia and 90 minutes west of New York City.

Iron Mountain will remain in these facilities under an initial 10-year lease term, with options to renew up to an additional 20 years.

This transaction is part of Iron Mountain’s ongoing capital recycling program, and Iron Mountain expects to utilize the proceeds to reinvest in higher growth areas of its business.

“The industrial sector continues to benefit from strong demand driven by e-commerce tailwinds, and we believe these well-located assets are a great addition to our portfolio, which is heavily weighted toward faster-growing sectors like logistics,” said David Levine, senior managing director at Blackstone Real Estate. “We will continue to pursue compelling opportunities to acquire high-quality income-generating assets on behalf of our BREIT investors.”

Blackstone Real Estate Income Trust originally registered $5 billion in shares and accepted gross offering proceeds of $4.9 billion from January 1, 2017 to January 1, 2019. The company later registered a $12 billion follow-on offering, and as of mid-November 2020, had received $9.1 billion in investor proceeds.

As of October 31, 2020, the REIT owned a property portfolio valued at $33.9 billion and had positions in real estate-related securities and loans totaling $4.7 billion. The company invests in multifamily, industrial, hotel, and retail properties, and real estate-related securities and loans.

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