Blackstone REIT Quickly Adding to Initial Portfolio with 6 Million-SF Industrial Purchase

High Street Industrial Portfolio
High Street Industrial Portfolio Blackstone’s non-traded REIT, Blackstone Property Earnings Trust, this week added another portfolio to its growing home stockpile.

The REIT’s most current acquisition is a 6 million-square-foot portfolio of predominantly infill industrial possessions it purchased from affiliates of High Street Realty Co. $402 million.

The portfolio is 97% rented to over 90 occupants and consists of 38 industrial homes totaling 5.97 million square feet. The properties are located in six submarkets with the following concentration based upon square footage: Atlanta (38%), Chicago (23%), Houston (17%), Harrisburg (10%), Dallas (10%) and Orlando (2%), inning accordance with Blackstone. The purchase rate breaks down to about $67.30/ square foot.

Blackstone did not provide a particular list of properties.

The REIT said that, over the last 2 years, market leas in those submarkets have increased by 5% every year while job has actually declined by around 100 basis indicate 5.2%. The REIT likewise said that infill industrial supply in these markets is anticipated to be constrained at 0.6% of stock throughout 2017 provided minimal land schedule near these population centers.

The REIT included the residential or commercial properties have actually published weighted typical launching spreads of 12% over the last 2 years, which Blackstone described as a measurement of the change in lease per square foot between new and expiring leases at a residential or commercial property. The portfolio published average effective yearly base rent of $4.31/ square foot as of March 31.

The acquisition was moneyed through a mix of cash on hand, a $5 million draw on the REIT’s line of credit, and a short-term $292 million loan from various loan providers lead by Bank of America. The REIT expects to transform the loan soon after closing long-lasting financing.

Likewise today, Blackstone REIT completed two other acquisitions.

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