Blackstone REIT and LBA Logistics have partnered to recapitalized industrial properties. BREIT acquired a 60% stake in two in two industrial portfolios owned by LBA in a deal valued at $1.6 billion.

The two portfolios total 71 properties and 9.5 million square feet. The properties are located in predominantly in last mile locations in West Coast markets, specifically in Seattle and California. These are two of the top performing industrial markets in the country, and unsurprisingly, the portfolio is 95% occupied.

With this transaction, 35% of BREIT's real estate portfolio is allocated to industrial product. During the pandemic, several major institutions have increased exposure to the indusial sector, particularly in high-quality logistics and ecommerce markets. Brian Kim, head of acquisitions and capital markets for BREIT, said that logistics properties are the top investment priorities globally. This acquisition is a quintessential example of the firm's investment strategy and execution. LBA managing partner Phil Belling added that the firm plans to continue to expand its partnership with Blackstone.