Blackstone Sells NY, NJ Industrial Properties For $246M

Blackstone’s $246M sale of NY and NJ industrial assets underlines strong demand for modern warehouses near urban centers.
May 13, 2024
Blackstone's $246M sale of NY and NJ industrial assets underlines strong demand for modern warehouses near urban centers.
  • Blackstone continues to double down on logistics by selling a portfolio of New York and New Jersey industrial properties for $246M.
  • The deal spotlights a surge in institutional demand for modern warehouses near major urban hubs.
  • E-commerce giants, like Amazon (AMZN), are a driving force behind the robust industrial property market.
Key Takeaways

Deal Details

Blackstone (BX) completed a nine-figure industrial property sale to Terreno Realty for $246M. The transaction includes over 20 properties near JFK Airport in Queens worth $152M, which Blackstone bought from TA Realty back in 2019, as well as other assets in NYC and NJ.

The deal is the latest in a series of rapid-fire warehouse acquisitions by the global asset manager, which recently acquired a heartburn-inducing $18.7B in warehouses from Singapore’s GLP—one of the largest real estate deals in history (in any sector).

For its part, Terreno recently acquired a portfolio of industrial properties in NYC, Northern NJ, the Bay Area, and LA for $365M, but did not disclose the seller.

A Logical Investment

The headline-making sale highlights the robust demand for industrial properties, driven by non-stop e-commerce expansions nationwide. Household names like Amazon are increasingly focused on shortening delivery times, which has led to a surge in urban warehouse construction and development.

With the acceleration of online shopping and the emphasis on rapid delivery, industrial real estate, particularly in key metropolitan regions, remains a lucrative asset class for well-capitalized investors seeking stable returns.

Why It Matters

The sale signifies Blackstone’s long-standing commitment to logistics and its strategic portfolio management initiatives.

Back in March, Blackstone sold a 3MSF SoCal industrial portfolio to Rexford Industrial Realty for $1B, then doubled down by refinancing over 100 industrial properties with $2.35B in debt. The company’s logistics portfolio sits at a staggering $175B in assets. 

But while the U.S. industrial sector witnessed unprecedented growth during the pandemic, recent data reveals a slowdown in pre-leasing rates for Class A industrial spaces, suggesting a potential adjustment in market conditions. Of the 4.4MSF of expected industrial completions this year, only 35% was pre-leased by the end of Q1.

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