A Blackstone Real Estate Income Trust Inc. subsidiary agreed to acquire a 146-property, roughly 21.7 million-square-foot industrial portfolio for around $1.8 billion.
The sellers are Cabot Industrial Value Fund IV LP and Cabot Industrial Value Fund IV Manager LP, and the properties are spread across Chicago; Dallas; Baltimore/Washington, D.C.; Los Angeles/Inland Empire, Calif.; South/Central Florida; New Jersey; and Denver.
The portfolio is 90% leased to 377 tenants, including Amazon.com Inc., FedEx, DHL, Coca-Cola, Fiat Chrysler and the U.S. government.
The company plans to fund the purchase with cash on hand, mostly from its ongoing public offering, property-level debt, and borrowings under its line of credit. The acquisition is expected to close in March or April of 2018.
Blackstone Real Estate's operating partnership will guarantee the $125.0 million termination fee required upon termination.
Blackstone Real Estate is a subsidiary of Blackstone Group LP.
