Blackstone Snaps Up Industrial Portfolio for $359M

FRP Holdings Inc. has agreed to sell 41 properties and two adjacent parcels in the Mid-Atlantic region to an affiliate of Blackstone Real Estate Partners VIII LP.
Lakeside Business Park in Edgewood, Md.,
Lakeside Business Park in Edgewood, Md.,

FRP Holdings Inc. has agreed to sell 41 industrial properties and two adjacent parcels in the Mid-Atlantic region to an affiliate of Blackstone Real Estate Partners VIII LP for a total purchase price of $358.9 million, FRP announced. The sale is expected to close in the second or third quarter.

The reduction in corporate income tax rates in a low cap rate environment created too good an opportunity to forgo,” John Baker II, FRP’s executive chairman & CEO, said in a prepared statement. “We look forward to redeploying these proceeds in our other business segments including Anacostia, Land Development, and Mining/Royalties segments where more recently we have enjoyed more favorable returns.

Portfolio details

More than three-quarters of the assets are in Maryland, with the rest in Virginia and Delaware, according to an SEC Form 8-K filed by FRP.

The Maryland properties include:

  • Transit Business Park, a five-building, 232,300-square-foot park in Baltimore;
  • Lakeside Business Park in Edgewood, Md., consists of nine warehouse/flex buildings on 64 acres of a site that totals 84 developable acres. Total developed space is 893,700 square feet;
  • Kelso Business Park, in Baltimore, two buildings totaling 69,700 square feet, completed in 1999;
  • Gilroy Center in Hunt Valley, a single building of 107,400 square feet on 7 acres. The building was completed in 1967, but underwent a full exterior renovation in 2016;
  • Four warehouse/office buildings in the 49-acre Hillside Business Park, in Hanover, Md.;
  • The single-building Dorsey Run Business Center, in Jessup, Md., with 85,100 square feet on nearly 6 acres.

Eastdil Secured LLC was FRP’s exclusive broker in connection with the sale, and Houlihan Lokey Capital Inc. served as FRP’s financial advisor. Nelson Mullins Riley & Scarborough LLP was FRP’s legal counsel, and Simpson Thacher & Bartlett LLP served as counsel to Blackstone on the transaction.

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