Blackstone Bags $450M Logistics Loan
- Sep 16, 2019
New York Life Real Estate Investors has provided a $450 million mortgage loan for the financing of a 47-property industrial portfolio that The Blackstone Group acquired from TA Realty. The fixed-rate loan has a term of seven years.
In a statement, New York Life identified Blackstone as the sponsor and said the portfolio consists of 68 buildings totaling 5.4 million square feet across nine major metropolitan areas in the U.S. Commercial Property Executive has independently confirmed that the fleet of logistics properties was recently acquired by Blackstone-managed funds from TA Realty.
Blackstone’s acquisition formed part of a larger $1 billion industrial sale by TA Realty, which also transferred 28 Texas properties to AEW Capital Management in a separate transaction. The overall portfolio sold by TA Realty in the two deals totaled 96 properties and 8.3 million square feet.
A well-tenanted portfolio
The statement by New York Life indicates that the portfolio acquired by Blackstone consists of assets that have historically performed well, with high levels of occupancy and a diverse tenant mix. The announcement added that the buildings are considered infill and highly functional. Further details about the properties are not available, but the overall 96-property portfolio sold by TA Realty houses more than 325 tenants and was 91 percent occupied as of July 1, according to a statement by the investment manager earlier this month.
The transaction comes soon after Stockbridge Capital Group landed $350 million in financing to acquire a 26-property, 6.3 million-square-foot industrial portfolio predominantly in the U.S. West Coast. The U.S. industrial market is thriving, with just 4.9 percent of space vacant nationwide and a record 306.1 million square feet of new space under construction as of the second quarter, according to research by Colliers International.