Blackstone is doubling down on logistics with its acquisition of a $358 million warehouse portfolio.
The asset manager bought 13 properties from Iron Mountain, which will lease back the properties in California, northern New Jersey and Pennsylvania’s Lehigh Valley, Bloomberg reported. The portfolio totals 2.1 million square feet, adding to Blackstone’s existing warehouse portfolio, which was approximately 800 million square feet in February 2020.
The sale represents the latest logistics deal for Blackstone continues to strengthen its holdings in the sector, which has performed well in the pandemic. Last year, the firm dropped $19 billion on a massive industrial portfolio, and it’s continued its investments in the sector throughout the pandemic.
“Fundamentally, this transaction to us is about buying great real estate in very strong industrial markets,” Nadeem Meghji, Blackstone’s head of real estate in the Americas, told Bloomberg. “First and foremost, we’re focused on location and asset quality. We believe these are good assets to own.”
The demand for e-commerce has risen steeply in recent months, continuing a trend that existed long before many Americans were sitting at home. Other investors have shown increased interest in the sector, too. KKR is currently in talks to purchase an $800 million portfolio of warehouses in Atlanta, Baltimore, Dallas and Chicago.
[Bloomberg] — Georgia Kromrei