Blackstone Real Estate Income Trust, Inc. (BREIT) and LBA Logistics (LBA) announced the recapitalization of two industrial portfolios owned by LBA comprising $1.6 billion of gross value.
Blackstone Real Estate Income Trust acquired an approximately 60% combined interest across both portfolios, and LBA’s investment fund and its investors retained the balance.
The portfolios comprise 71 high quality assets totaling 9.5 million square feet and are approximately 95% occupied. The assets are located predominantly in last mile locations in West Coast markets with the vast majority in California and Seattle, which are two of the best performing industrial markets in the country.
“This transaction represents a compelling opportunity to acquire high-quality last mile industrial assets on behalf of our BREIT investors. Logistics is one of our highest conviction investment themes globally, and this acquisition illustrates BREIT’s continued momentum executing on exciting opportunities with significant growth potential. LBA Logistics is a best-in-class operator in the logistics sector, and we look forward to expanding our partnership with them,” said Brian Kim, Head of Acquisitions & Capital Markets for BREIT.
Phil Belling, LBA’s Managing Partner, added, “These assets are benefitting from the strong fundamentals in the industrial sector, which we believe will continue to be attractive over the long-term. We are excited to grow our partnership with Blackstone and look forward to continuing to create value for our investors in the logistics space.”
Upon closing this transaction, more than 90% of BREIT’s real estate investments will be in multifamily, industrial, and net leased assets, with industrial representing more than 35% of BREIT’s portfolio.
Eastdil Secured served as an advisor to LBA Logistics.