Blackstone Group Buys 1.7M SF Industrial Portfolio For $151M
The three buildings total 1.7M SF, are fully leased to Kraft Heinz and Mondelez Foods, and were acquired last month from a fund managed by JP Morgan Chase. The JP Morgan Chase Fund paid $127M for the properties in 2006. Blackstone's latest deal is on the heels of a blockbuster 22M SF portfolio acquisition in December that included 24 properties totaling 4.1M SF in the Chicago area.
Low vacancy rates and high demand for warehouses from e-commerce retailers and food distributors are driving industrial real estate activity across the Chicago area. Chicago industrial real estate saw an 11.5% internal rate of return last year, well above other asset classes. And investors are seeking portfolio sales. Plymouth Industrial REIT paid $102M for a 15-property portfolio in December from a venture of Brennan Investment Group and Goldman Sachs.