The Blackstone Group has entered into agreements to purchase a 9.6 million-square-foot portfolio of warehouse assets from GE Capital, the financing division of General Electric, on behalf of its Chicago-based industrial arm, IndCor Properties. Though the deal has yet to close, a person with knowledge of the situation told PERE that the purchase price should be approximately $550 million.
The properties, which are all 85 percent to 90 percent leased, are located across nine states. About half of the portfolio is based in Texas, primarily in the Austin and Dallas markets, with the remainder of the properties located in such markets as Portland and Denver. Blackstone was interested in making the acquisition in order to expand its IndCor portfolio to include more assets in undersupplied high-growth industrial markets, according to a source close to the situation.
The acquisition will bring IndCor’s holdings to a total of 117 million square feet. The industrial venture, formed in 2010, is comprised of a national portfolio across major logistics markets, with concentrations in areas like the West Coast and the Northeast, including New Jersey and Pennsylvania. Blackstone’s most recent additions to the IndCor portfolio included two deals last May—a $960 million industrial joint venture with global logistics firm Prologis and a $241.5 million warehouse portfolio acquisition from First Potomac Realty.
The current transaction marks Blackstone’s second major deal with GE Capital in the past six months. In August, the firm acquired majority interests in 80 apartment complexes for $2.7 billion. That acquisition, along with a couple thousand existing units, kicked off Blackstone’s plans to create a multifamily business similar to its IndCor industrial platform.