Blackstone Real Estate Income Trust has acquired the Canyon Industrial Portfolio from Cabot for $1.8 billion.
The 22 million-square-foot portfolio is comprised of 146 last-mile infill warehouses and distribution buildings with major concentrations in Chicago, Dallas, Baltimore, Washington D.C., Los Angeles, South and Central Florida. Property tenants include Amazon, FedEx, DHL, Coca-Cola, Fiat Chrysler and the U.S. Government.
“The Canyon transaction exemplifies Blackstone REIT’s focus on real estate asset classes and geographic markets with attractive fundamentals. Blackstone REIT’s portfolio, with its emphasis on stable, income-producing warehouse and apartment assets, is well-positioned to benefit from continued tailwinds in these sectors,” said A.J. Agarwal, president of Blackstone REIT.
The acquisition was funded through a combination of a $1.1 billion mortgage secured by the portfolio, a $200 million mezzanine loan secured by equity interests in the portfolio, and available cash. PGIM Real Estate Finance and the New York State Teachers’ Retirement System provided the senior mortgage financing, according to Real Estate Direct.
A multi-market investment sales team from Cushman & Wakefield represented Blackstone in the acquisition of the Cabot Properties’ portfolio. The team included New jersey based Gary Gabriel along with James Carpenter in Chicago; Jeff Chiatein Irvine, CA; Jud Clements in Dallas; Mike Davisin Tampa; and Stewart Calhounin Atlanta. CBRE and Eastdil Secured represented Cabot.
“Investors continue to have a healthy appetite for U.S. industrial real estate, driven by eCommerce and broader economic growth,” Carpenter said. “With record-breaking absorption, relatively conservative speculative development and forecasts for continued strong job growth, we anticipate industrial will remain the most sought-after asset class for the foreseeable future.”