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.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
