Blackstone Sells Nearly 14M SF of Industrial Properties for $3.1B

Who else would the buyer be but Prologis?

Blackstone has signed a definitive agreement with Prologis to sell its nearly 14 million square feet of industrial properties from its affiliated opportunistic real estate funds for $3.1 billion. The acquisition price represents an approximately 4% cap rate in the first year and a 5.75% cap rate when adjusting to today’s market rents, according to the companies. Prologis is paying cash for the assets. 

Blackstone remains committed to the logistics asset class, with Nadeem Meghji, head of Blackstone Real Estate Americas, calling it a “high conviction theme for us,” in prepared remarks. He notes that the private equity giant owns $100 billion of warehouses in North America and $175 billion in total around the world. 

Prologis and Blackstone have completed more than a dozen transactions together in the past 11 years. 

Prologis currently owns 1.2 billion square feet of logistics real estate in 19 countries. This acquisition expands the company’s presence in key markets, including Atlanta, Baltimore/Washington DC, California (Southern California, Central Valley, SF Bay Area), Dallas, Las Vegas, New York/New Jersey, Phoenix and South Florida. The company plans to hold all of the properties acquired. This deal expands Prologis’ relationship with 50 existing customers and adds 77 new customers.

The transaction is currently expected to close by the end of the second quarter.

Eastdil Secured, Barclays, BofA Securities, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, PJT Partners and Wells Fargo acted as financial advisors to Blackstone, and Simpson Thacher & Bartlett LLP acted as legal advisor.