Blackstone will use a floating-rate CMBS loan and $110.3M of equity to acquire 16 grocery-anchored properties throughout Texas, according to a Fitch Ratings presale report.
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The two-year CMBS loan is for $331.2M, bringing the total price to $441.5M for the portfolio sale set to close on March 4. Blackstone previously declined to comment on the sale price to Bloomberg but confirmed the planned acquisition.
“Grocery-anchored retail is one of our high-conviction themes given the strong fundamentals across the sector,” Blackstone Real Estate Managing Director Adam Leslie said in a statement to Bloomberg. “We are thrilled to acquire these high-quality assets across the largest cities in Texas.”
The portfolio includes 11 properties in the Houston area, four in the Dallas-Fort Worth area and one in San Antonio, with anchors including nationally recognized grocers H-E-B, Kroger and Keemat.
The properties total nearly 1.9M SF, ranging from the 26K SF Colony Plaza in Missouri City to the 306K SF Westgate Marketplace in West Houston, which is anchored by H-E-B and Kohl’s. The 16-property portfolio is more than 96% occupied.
Perform Properties, a retail real estate operator that specializes in grocery-anchored shopping centers in Texas, will manage the portfolio.
The $331.2M loan is expected to be originated by a subsidiary of Morgan Stanley, according to the Fitch Ratings report. The total purchase price includes $9.2M of closing costs.
Blackstone is one of the world’s largest property owners, with about $1T of assets under management as of January, and it has scaled up its grocery-anchored investment over the past year.
In February 2025, Blackstone acquired Retail Opportunity Investments Corp., which had a portfolio of 10.5M SF of grocery-anchored retail space across 93 West Coast locations.
Blackstone also partnered on a $1.5B take-private deal of Alexander & Baldwin, the largest owner of grocery-anchored shopping centers in Hawaii. Under the acquisition deal, approved in December, the REIT continues to operate as a standalone company.
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