Blackstone’s Link Logistics Shopping 26 Western Warehouses

Link Logistics, an industrial CRE unit of global investment giant Blackstone, is shopping three portfolios of Western warehouses, each encompassing more than 900K SF.

CBRE is marketing the portfolios, which it says are all fully leased with overall weighted average remaining lease term of 3.6 years. The brokerage is touting below-market rents for the properties that can be raised upon rollover, according to a Green Street report.

The estimated value of the entire package is $570M, a $204 per SF valuation that analysts estimate would give a buyer an initial annual yield of nearly 4%.

The portfolios, which include a mix of single- and multi tenant buildings ranging from 21K Sf to 281K SF with 40 overall tenants, are located in three regions: the SF Bay Area, the Pacific Northwest and the Mountain West.

The largest portfolio in terms of square footage is in the Bay Area, encompassing a total of 943K SF. It includes eight industrial buildings that have 13 tenants with an average remaining lease term of 3.6 years. The Bay Area portfolio is valued at an estimated $190M, or $202 per SF, which would result in a yield of more than 4%.

There are 10 buildings encompassing 929K SF in the Pacific Northwest portfolio, which includes properties in suburbs of Seattle and Portland that have 13 tenants with a weighted average remaining lease term of 4.2 years. The portfolio value is estimated at $280M, or $258 per SF, a 3.75% cap rate.

The Mountain West portfolio, which totals 920K SF, includes eight properties built between 1974 and 1996 in Denver, Salt Lake City and Las Vegas with 14 overall tenants and an average remaining lease term of 2.8 years. The portfolio is valued at about $140M, or $152 per SF, with a 3.75% cap rate.

The older facilities have ceiling heights of 20 to 26 feet.

The largest properties in the portfolios are a 281K SF warehouse at 3900 Nome Street in Denver; a 262K SF facility at 363 Industrial Way in Benicia, CA; and a 229K SF warehouse at 6111 S. 228th Street in Kent, WA.

Established by Blackstone in 2019, Link Logistics is the owner and operator of the largest US-only portfolio of logistics real estate. According to its Q1 2022 earning report, Link owns, has interest in, or has under development properties that upon completion will encompass a total of 559M SF, of which it says 98% is leased.

Link said it executed 18.3M SF of industrial leasing in Q1 and expanded its development pipeline to $9B, up from $7.1B at the end of 2021.

By the end of 2023, Link plans to deliver about 9M SF of industrial infill development in Los Angeles, Inland Empire, South Florida and New Jersey.

According to the company, more than $1T of US GDP moves through logistics facilities owned and operated by Link Logistics.