Rybczynski additionally notes that the new product that has been added to the portfolio points more towards distribution and logistics buildings than with their initial sale. Although the media often lumps together industrial as one asset class, the senior consultant says there is a significant distinction between warehouse and distribution facilities.

“The initial portfolio was 57% warehouse versus 25% distribution. That tells us those buildings tended to be a bit older and not as well situated for fast throughput. The initial sale also included some manufacturing and a little bit of service and showroom type buildings, things that were a bit outside the scope of distribution. Whereas this new part of the portfolio is 50% distribution and about 45% warehouse—almost exclusively distribution and warehousing,” says Rybczynski.

He notes the largest buildings in the recent acquisition, two 1.5 million square-feet buildings that belonged to Whirlpool were also in the initial portfolio. They are distribution properties as are all 10 of the largest buildings in the deal.

As to any competitors in the industrial purchasing space, the CoStar pro comments that Blackstone is blowing everyone else out of the water. He states companies including Prologis and Duke have comparable US industrial portfolios but they tend to develop the properties rather than buy them.

Finally, Rybczynski observes that the initial portfolio that Blackstone sold had more of a West Coast tenor, focusing on the Long Beach and Los Angeles area. The recently traded portfolio has more of a Southeast feel to it. “It's important to note because this newer portfolio focuses more on areas of growth in terms of population as well as adjusts for the Panama Canal expansion,” he adds.