Blackstone REIT Portfolio Tops $7 Billion with Latest $1.8 Billion Portfolio Acquisition
Blackstone Real Estate Income Trust Inc., a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), has acquired the Canyon Industrial Portfolio, a 22 million-square-foot portfolio of industrial assets, for approximately $1.8 billion.
Blackstone Real Estate Income Trust Inc., a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), has acquired the Canyon Industrial Portfolio, a 22 million-square-foot portfolio of industrial assets, for approximately $1.8 billion. The seller was Cabot Industrial Value Fund IV L.P. and Cabot Industrial Value Fund IV Manager LP.
The Canyon Industrial Portfolio is comprised of 146 last-mile infill warehouses and distribution buildings with major concentrations in Chicago, Dallas, Baltimore/Washington D.C., Los Angeles/Inland Empire and South/Central Florida. Property tenants include Amazon, FedEx, DHL, Coca-Cola, Fiat Chrysler and the U.S. Government.
“The Canyon transaction exemplifies Blackstone REIT’s focus on real estate asset classes and geographic markets with attractive fundamentals. Blackstone REIT’s portfolio, with its emphasis on stable, income-producing warehouse and apartment assets, is well-positioned to benefit from continued tailwinds in these sectors,” said A.J. Agarwal, president of Blackstone REIT.
The acquisition was funded through a combination of a $1.1 billion mortgage secured by the portfolio, a $200 million mezzanine loan secured by equity interests in the portfolio, and available cash.
With the closing of this acquisition, the company’s portfolio now totals $7 billion in gross asset value across 272 assets primarily concentrated in 33 million square feet of industrial assets and 17,200 multifamily apartments, with modest exposure to select-service hotels and grocery-anchored shopping centers.
Blackstone Real Estate Income Trust, a perpetual life, monthly NAV REIT, invests in stabilized income-oriented commercial real estate in the United States and real estate-related securities. The company is headquartered in New York City and externally managed by BX REIT Advisors., a subsidiary of Blackstone. Blackstone REIT has raised more than $2.3 billion in investor equity since inception.
