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

TRD New York TRD INSIGHTS /
Jun.June 24, 2020 01:30 PM
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.


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