TRD Insights: Here’s how much tenants pay for space at Blackstone’s massive industrial portfolio

180M sf portfolio pulls in $400M in rent per year, with tenants that include Amazon and US government

New York Insights /
Jun.June 24, 2020 09:00 AM
Blackstone’s Jonathan Gray
Blackstone’s Jonathan Gray

When Blackstone Group shelled out $18.7 billion last year for 179 million square feet of industrial space, it was one of the largest real estate deals in history. So it’s not surprising that when Blackstone tapped the securitized debt market to finance a large chunk of that portfolio it acquired from Singapore’s GLP, it ended up being one of the largest single-borrower CMBS deals as well.

The $5.6 billion mega-transaction, fittingly named BX 2019-XL, covered about a third of the total square footage Blackstone acquired from GLP. As is usually the case with CMBS deals, disclosures associated with the securitization provide an inside look at the properties’ finances.

The portfolio’s rent roll features well-known retailers like Home Depot and Petco, as well as New Jersey-base alcohol distributor Allied Beverage Group. UPS, FedEx and Amazon also feature prominently, as does the U.S. government, which pays $3 million in rent a year on two leases spanning 440,000 square feet.

Combined, the properties pull in more than $400 million in rent a year, with the top 20 accounting for 17.8 percent of that, about $71 million.

Geographically, the New York City and Los Angeles metropolitan areas each account for more than 10 percent of the CMBS portfolio’s value, according to Trepp, followed by Reno, Nevada (8.9%), San Francisco (8.3%), Seattle (8%) and Miami (6.9%). By state, California alone accounts for more than a quarter of the portfolio’s value, followed by Nevada, Texas and New Jersey.

Blackstone followed up its big GLP deal with several more acquisitions in 2019, while also seeking to sell off non-core pieces of the GLP portfolio to other companies, such as Prologis.


Related Articles

arrow_forward_ios
15301 Springdale Street and Crown Associates president Mitchell Bloom. (LinkedIn, CBRE)
SARES REGIS sells Orange County warehouses to Crown Associates for $35.3 million
SARES REGIS sells Orange County warehouses to Crown Associates for $35.3 million
Goodman CEO Greg Goodman and a rendering of the facility. (Goodman)
Goodman’s massive logistics center will target e-commerce tenants
Goodman’s massive logistics center will target e-commerce tenants
Blackstone CEO Stephen Schwarzman (Getty, iStock)
Blackstone buys San Diego apartment complexes in $1B deal
Blackstone buys San Diego apartment complexes in $1B deal
(Getty, iStock)
SoCal industrial boom may prompt tighter air quality regulations
SoCal industrial boom may prompt tighter air quality regulations
Clarion Partners CEO David Gilbert and Trammell Crow CEO Mike Lafitte. (The Center at Needham Ranch, Clarion Partners, Trammel Crow)
DrinkPAK gulps down 400K sf at Needham Ranch complex
DrinkPAK gulps down 400K sf at Needham Ranch complex
Rexford Co-CEOs Howard Schwimmer and Michael S. Frankel and Quixote CEO Mikel Elliott. (Google Maps, Rexford, Quixote)
Rexford Industrial inks studio and equipment firm to big lease
Rexford Industrial inks studio and equipment firm to big lease
Intercontinental’s Jessica Levin and PGIM’s David Hunt with 20730 Prairie Street (Google Maps, iStock)
Amazon-leased warehouse sells for $74M
Amazon-leased warehouse sells for $74M
Senior Vice President of Duke Realty, Nancy Shultz. (Google Maps, Duke Realty)
Duke Realty makes industrial buy in City of industry
Duke Realty makes industrial buy in City of industry
arrow_forward_ios

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

Loading...