Principal flips portfolio to Blackstone Group for $500M

Just one month ago, it bought out its former partner, Majestic Realty

Los Angeles /
Nov.November 01, 2017 09:00 AM

Just a month after it bought out its former partner Majestic Realty‘s stake in 16 properties, Principal Real Estate Investors has churned a sizable profit on a portion of the assets.

Out of the 16 million square feet it owned with Majestic, Principal flipped a 4 million-square-foot portfolio to none other than private equity giant Blackstone Group for a whopping $500 million, the Wall Street Journal reported. The purchase includes warehouses, distribution centers and other industrial sites.

Principal Real Estate, a subsidiary of Principal Financial Group, announced it bought out Majestic’s 50 percent stake in their 16 jointly-owned commercial sites worth over $111.5 million in September. The exact amount Principal paid for the remaining stake was not disclosed.

The two firms developed and jointly owned over 100 commercial properties since first partnering in 1971.

Principal Financial reported a $411 million after-tax net realized capital gain as a result of a real estate transaction in its third quarter earnings report released last week. It did not identify Blackstone as the buyer.

The recent purchase further expands Blackstone’s presence in the region. It paid $1.5 billion for a portfolio of West Coast logistics centers from LBA Realty just last year. It has been selling a solid chunk of logistics properties, too, including IndCor Properties for $8.1 billion and Logicor for $14.2 billion. The equity firm has also been keeping active on the commercial side – it sold 5670 Wilshire to Rockpoint Group for $215 million last month, one of many trophy office dispositions. [WSJ]Natalie Hoberman


Related Articles

arrow_forward_ios
Granite CEO Michael Dardick and Industrious CEO Jamie Hodari

Industrious partners with landlords to offer tenants satellite workplaces

Industrious partners with landlords to offer tenants satellite workplaces
Burbank Studios with Blackstone's Nadeem Meghji and Jeffrey Worthe (Google Maps)

Blackstone partners with Worthe Real Estate on 500K sf office tower

Blackstone partners with Worthe Real Estate on 500K sf office tower
Jeffrey Worther and Blackstone’s Jonathan Gray with (clockwise from top left) Media Studios, The Point, 3800 Alameda and Central Park (Getty)

Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio

Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio
Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske

Northwestern Mutual picks up Santa Monica office campus for $166M

Northwestern Mutual picks up Santa Monica office campus for $166M
Victor Coleman and a rendering of the project (Credit: Gensler via Urbanize)

Hudson Pacific wins key approval for 500K sf Hollywood studio expansion

Hudson Pacific wins key approval for 500K sf Hollywood studio expansion
Prop 15 property tax measure draws millions (Credit: iStock)

Prop 15 property tax measure draws millions of dollars from for and against campaigns

Prop 15 property tax measure draws millions of dollars from for and against campaigns
California is allowing barbershops and salons to reopen under new coronavirus mitigation guidelines (Credit: Noam Galai/Getty Images)

California allows barbershops to reopen, but LA holds back

California allows barbershops to reopen, but LA holds back
Blackstone CEO Stephen Schwarzman, and the building (Credit: Google Maps)

Blackstone pays $62M for Southeast LA warehouse

Blackstone pays $62M for Southeast LA warehouse
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...