Blackstone, LBA Logistics get $944M financing for logistics portfolios

Industrial real estate values have surged during pandemic

National /
Feb.February 05, 2021 09:48 AM
Blackstone's Jonathan Gray (Photos via Twitter;iStock/Photo Illustration by Kevin Rebong for The Real Deal)

Blackstone’s Jonathan Gray (Photos via Twitter;iStock/Photo Illustration by Kevin Rebong for The Real Deal)

An affiliate of asset-manager Blackstone Group and LBA Logistics nabbed $944 million in financing for two industrial portfolios, Commercial Observer reported.

The non-recourse loan, originated on Jan. 21, is secured by Blackstone Real Estate Income Trust, known as BREIT, and LBA’s leasehold interests in 52 warehouse properties divided into two portfolios totaling 9.5 million square feet.

Blackstone paid $918 million for a 41 percent stake in the larger of the two portfolios, while eLBA Logistics retained a 20 percent stake. Blackstone also acquired an 85 percent stake in the other portfolio for $644.4 million, with LBA Logistics keeping the rest of it.

Bank of America, Barlays and Goldman Sachs provided the non-recourse financing. The two warehouse portfolios consist of last-mile facilities on the West Coast and in the Southwest.

The larger of the two portfolios consists of seven properties in Seattle, 14 in California, and others in Utah, Nevada and Texas. Half of the other portfolio is in California, with the balance of it scattered across Oregon, Arizona and Washington.

Industrial warehouse space has been a stellar performer during the pandemic, as more Americans are ordering goods and services online. While values of other real estate property types have declined 8 percent, industrial real estate has seen an increase of the same amount, according to research firm Green Street.

Other investment giants, including KKR and Stockbridge Capital Group, are increasing their bets on logistics as well.

[CO] — Georgia Kromrei


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