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Blackstone gets $690M financing for 44 industrial properties

Wells Fargo, United Overseas Bank provided the loan

Stephen A. Scharzman, CEO, Blackstone Group (Getty Images, iStock)
Stephen A. Scharzman, CEO, Blackstone Group (Getty Images, iStock)

An affiliate of Blackstone Group got $690 million of financing for 44 industrial, office and data center properties totaling 6.85 million square feet across the nation.

Wells Fargo provided a two-year, floating-rate, non-recourse loan to Blackstone Real Estate Income Trust, known as BREIT, according to JLL, which represented the borrower. The New York unit of Singapore’s United Overseas Bank joined the financing, committing to half of the arranged capital post-closing.

Blackstone bought a portfolio from Cabot Properties that includes warehouses, truck terminals, data centers and raw land with an average of 28-foot clear height and more than 1,140 dock doors. The properties, in 10 states including Illinois, Utah and Minnesota, are more than 80 percent leased by companies in the e-commerce, web services and pharmaceutical industries.

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The purchase is part of BREIT’s acquisition of 102 properties. Blackstone said this week that it paid $2.8 billion for 124 properties in the U.S. and Europe. The firm’s Core+ business bought 22 properties in the UK, Germany and the Netherlands.

Blackstone had a strong third quarter, led by real estate investments, which rose to $230 billion, the biggest increase among the group’s segments.

The firm’s private REIT bought WPT Industrial Real Estate in August in an all-cash deal valued at $3.1 billion. WPT owned about 110 commercial properties with almost 37.5 million square feet of industrial space across 20 states.

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