Blackstone wants to free up more industrial space.
The private equity giant has listed a large industrial portfolio through its subsidiary Link Logistics with Jones Lang LaSalle (JLL), real deal Already learned. The six properties in the scheme — five buildings and an infill parking lot — are located in and around New York City, including two near LaGuardia Airport, two on Long Island, one near JFK and one is located in Inwood.
The portfolio totals 929,000 square feet and is fully leased, with one tenant per property, according to the listing. The weighted average remaining lease term is 6.13 years.
Tenants include FedEx and Harris/Edo Corporation. The portfolio is offered in the form of real estate investment trust shares for sale. No asking price was given.
The listing follows Blackstone’s massive sale of industrial products to Prologis for $3.1bn. The portfolio consists of 70 properties, the majority of which are warehouses and distribution centers in markets across the country covering nearly 14 million square feet.
The sale and listing is not a sign that Blackstone, led by Stephen Schwarzman, is abandoning the industrial sector.According to the Wall Street Journal, the company hold $175 billion global industrial portfolio. The company also has no plans to stop buying warehouses and distribution centers. In June, Blackstone bought Whole Foods’ Florida warehouse for $28.6 million.
The industrial sector has been one of the few consistent bright spots in commercial real estate over the past decade, fueled largely by the rise of online shopping and Amazon’s push for fast delivery.
Meanwhile, office buildings have shrunk due to work-from-home policies. In New York, available office space is at an all-time high.
Blackstone has been ahead of this trend. After acquiring Sam Zell’s stake in office properties for $39 billion in 2007, its global office portfolio made up 60% of the company’s total holdings, but the company has cut that figure to 2%.
Blackstone declined to comment on the industrial portfolio listing. JLL could not be contacted in time for publication.
One property in the portfolio, a warehouse at 83-15 24th Avenue near LaGuardia, was purchased by Blackstone from Steel Equities in 2019 for $55.5 million. Another address is 83-84 23rd Avenue, which is nearby. Other properties include 1 Johnson Road in Inwood, 1250 and 1500 New Horizons Boulevard in Amityville and 50 Emjay Boulevard in Brentwood.