Blackstone Secures $1B Loan To Refinance Industrial Portfolio
Blackstone’s nontraded REIT has refinanced a 59-property industrial portfolio across 13 states.
It secured a $1B CMBS loan originated late last month by Goldman Sachs, German American Capital Corp., Barclays Capital Real Estate Inc. and JPMorgan Chase, according to a KBRA presale report.
The 11.6M SF portfolio includes warehouse, cold storage, light industrial, manufacturing and parking assets. Just over $981M of the mortgage is to repay Blackstone Real Estate Income Trust's prior loan on the portfolio, and the rest is for closing costs.
The interest-only, floating-rate loan has an initial two-year term with three one-year extension options.
The portfolio consists of 58 industrial properties and one surface parking lot. It includes 13 bulk warehouses, 18 other warehouses, five cold storage facilities, 21 light industrial facilities and one manufacturing asset. They have an average age of 33 years.
BREIT purchased the assets between 2018 and 2020. The properties are most concentrated in California — where 2.7M SF is located — as well as Florida, Indiana, Ohio and Georgia, which all have at least 1M SF.
KBRA describes the portfolio as “generally located in well established infill areas with good access to major area highways.”
As of April, the properties were 96.2% leased to 145 different tenants, according to KBRA. Eighteen of the properties have a single tenant.
Its largest tenants are Stockton Logistics, Penske Logistics, Aberdeen Logistics, HD Supply Facilities Maintenance and KiWiCo.
Fitch’s ratings report said the “portfolio exhibits strong geographic diversity” and “significant tenant diversity.”
KBRA gave the portfolio an average weighted property score of 3.05 on a scale of one to five, ranging from “poor” to “outstanding” quality.
Fitch’s report estimated the portfolio has a “stressed net cash flow” of $72.3M, while KBRA estimated a $71M net cash flow. Those figures are 9.3% and 11% lower, respectively, than the issuer’s net cash flow figure.
KBRA applied a 7.74% cap rate to its valuation, and Fitch applied a 7.375% cap rate, both above the issuer’s implied 5.27% cap rate.
