Blackstone sells huge industrial portfolio in NYC, New Jersey

Sale includes more than 20 properties in Queens

Blackstone Sells Industrial Properties in NYC, NJ
Blackstone’s David Levine and Terreno Realty's W. Blake Baird (Blackstone/IFP, Sunstone Hotels, Getty)

Blackstone sold a huge portfolio of industrial properties throughout New York and New Jersey for $246 million to Terreno Realty.

More than 20 properties in the portfolio are in Queens near JFK Airport. That portion of the sale totaled $152 million.

Terreno announced last week it had acquired a portfolio of industrial properties in New York City, Northern New Jersey, San Francisco’s Bay Area and Los Angeles for $365 million, but did not disclose the seller.

New York City property records posted Thursday pointed to Blackstone, which confirmed the deal.

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“Logistics has been a high-conviction theme for us for well over a decade, and this transaction illustrates the continued strength we see today,” said David Levine, co-head of Americas Acquisitions for Blackstone Real Estate.

Blackstone bought the Queens properties from TA Realty in 2019. The deal came amid a flurry of industrial deals by Blackstone. The firm had just bought $18.7 billion in warehouses from Singapore-based GLP in one of the largest real estate deals in history.

Industrial values soared to new heights during the pandemic because of demand from Amazon and other e-commerce companies. Developers rushed to build state-of-the-art warehouses and to secure sites near population centers as internet retailers made fast delivery a priority. More than 4.4 million square feet of industrial space is set for completion this year.

But demand for Class A industrial has slowed. Of the 4.4 million square feet in the development pipeline, only 35 percent is pre-leased as of the first quarter of 2024, according to a report by CBRE.

Blackstone’s logistics portfolio totals $175 billion.

In March, Blackstone sold a 3 million-square-foot industrial portfolio in Southern California to Rexford Industrial Realty for about $1 billion. That same month Blackstone refinanced over 100 industrial properties across the U.S. with $2.35 billion in debt from various banks.

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From left:  145-07 156th Street,  182-09 149th Road, and 149-39 Guy R Brewer Blvd in Queens with Blackstone’s president Jonathan Gray
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