September 22, 2016
New York-based Blackstone Group LP is acquiring $1.5-billion worth of logistics centers from Irvine, CA-based LBA Realty LLC. The 12-million-square-foot portfolio of assets is primarily located on the West Coast.
LBA’s industrial portfolio totals more than 20 million square feet in Los Angeles, Oakland, San Francisco, San Diego and Seattle, as well as Dallas, Denver, Phoenix and Las Vegas. Assets include state-of-the-art, high bay distribution space, light manufacturing, multi-tenant business parks and R&D space at major ports and near airports.
It is the biggest move the giant private equity fund has made into the U.S. industrial market, and likely reflects the positive impact of e-commerce on the sector. Investor demand is unusually high at a time when some view CRE property sectors to be in the late stages of a bull market.
The LBA portfolio acquisition is being made through a Blackstone “core-plus” fund.
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