540K sf in LA figures into Blackstone’s $2.2B industrial refi

Loan comes on portfolio that includes properties in City of Industry, Cerritos, Compton and Gardena

Blackstone’s Kenneth Caplan and Kathleen McCarthy with 200 Old Ranch Road (Blackstone, Google Maps, iStock)
Blackstone’s Kenneth Caplan and Kathleen McCarthy with 200 Old Ranch Road (Blackstone, Google Maps, iStock)

Blackstone has scored a $2.2 billion refinancing package for a portfolio of 89 industrial properties across the U.S. previously owned by WPT Industrial REIT, The Real Deal has learned.

Goldman Sachs, Bank of America and Bank of Montreal provided the loan to Blackstone in October, according to loan documents filed with Los Angeles County and a DBS Morningstar report, though it has not yet been reported. Blackstone declined to comment.

Four of the properties, totaling about 540,000 square feet, are located in Los Angeles County at 12932 Midway Road in Cerritos; 1715 West 132nd Street in Gardena; 2910 Pacific Commerce Drive in Compton, and 200 Old Ranch Road in the City of Industry.

The property in City of Industry is a 212,000-square-foot building leased to FedEx — the portfolio’s largest tenant. FedEx leases 11 properties totaling around 1.8 million square feet, or about 6.5 percent of the portfolio overall.

Blackstone acquired the 89 properties when it bought Toronto-based WPT Industrial REIT for $3.2 billion.

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The floating rate, interest-only loan will mature in two years, though Blackstone has the option to extend for an additional three years.

About 10 percent of the real estate in the portfolio is located in Atlanta, with the largest property located in Lithia Springs. That 936,000-square-foot building is leased to Amazon, which uses it as a fulfillment center, through 2028, according to DBS Morningstar.

Most of the remaining properties are located in Chicago, Florida, Pennsylvania, Minnesota, Kentucky, Texas, Indiana and New Jersey, among other markets.

The loan comes amid a flurry of activity for the private equity giant, which has secured billions to keep hundreds of industrial properties in its hands. Last year, Blackstone scored a $690 million loan from Wells Fargo to refinance 44 industrial, office and data center properties. Earlier this year, the firm scored a $415 million mezzanine loan for 110 mostly industrial properties from Clarion Partners and a $1.8 billion CMBS loan for another 110 warehouse, manufacturing and office properties from six banks.

And that’s just on the debt side. Separately, the firm recently spent $13 billion to buy student housing owner American Campus Communities and $7.6 billion to acquire suburban office specialist PS Business Parks.