- Blackstone’s nontraded REIT, BREIT, secured a $1B CMBS loan to refinance a 59-asset, 11.6M SF industrial portfolio.
- The floating-rate loan, originated by a syndicate including Goldman Sachs and JPMorgan, carries an initial two-year term with three one-year extension options.
- The properties, 96.2% leased and spread across 13 states, include a mix of warehouses, cold storage, and light industrial assets, with major concentrations in California, Florida, Indiana, Ohio, and Georgia.
A Nationwide Refi
Blackstone Real Estate Income Trust (BREIT) has refinanced a large-scale, income-producing industrial portfolio spanning 13 states, reports Bisnow. The $1B commercial mortgage-backed securities (CMBS) loan, originated late last month by Goldman Sachs, German American Capital Corp., Barclays Capital Real Estate Inc., and JPMorgan Chase, will largely go toward repaying a prior loan on the portfolio.
The Asset Breakdown
The portfolio spans 11.6M SF and includes 58 industrial assets and one parking lot. Property types range from bulk and traditional warehouses to cold storage, light industrial, and manufacturing sites. On average, the assets are 33 years old and were acquired by Blackstone’s BREIT between 2018 and 2020.
The largest concentrations of square footage are in California (2.7M SF), with Florida, Indiana, Ohio, and Georgia each contributing over 1M SF.
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Financing Terms
The loan is interest-only and floating-rate, with an initial term of two years and options for three one-year extensions. Of the $1B total, $981M will go toward refinancing existing debt, while the rest will cover closing costs.
Tenant And Portfolio Metrics
As of April, the portfolio was 96.2% leased to 145 tenants, with 18 properties leased to a single tenant. Key occupiers include Stockton Logistics, Penske Logistics, Aberdeen Logistics, HD Supply, and KiWiCo. Both KBRA and Fitch highlighted the portfolio’s strong geographic and tenant diversity.
Valuation And Risk Metrics
KBRA rated the properties with an average weighted score of 3.05 (on a 1–5 scale), signaling mid-level quality. Both KBRA and Fitch estimated stressed net cash flows at $71M and $72.3M, respectively — slightly below Blackstone’s reported figure. The rating agencies applied cap rates between 7.375% and 7.74%, significantly higher than Blackstone’s implied 5.27% cap rate.
Why It Matters
Industrial real estate remains a top-performing sector, and this refinancing move signals BREIT’s continued confidence in its portfolio and market fundamentals. While agency cap rates suggest a conservative valuation outlook, the strong occupancy and tenant diversity underscore the underlying asset stability.
What’s Next
With options to extend the loan up to five years and strong leasing fundamentals in place, Blackstone appears positioned to ride continued demand in the industrial sector — even as capital markets remain selective.
