Blackstone Real Estate Income Trust has secured a $1.71B CMBS loan to refinance a 76-property industrial portfolio, according to a Fitch Ratings report.
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The world’s largest alternative asset management firm will collect a $105M dividend from the mortgage loan proceeds, which will also refinance $1.48B of existing debt and pay $40.6M in closing costs, Fitch's report states.
Blackstone declined to comment on the loan. Fitch predicts the transaction will close Oct. 15.
The floating-rate loan is expected to have an initial two-year term and three one-year extension options and require interest-only monthly payments, according to KBRA’s preliminary ratings report.
The loan is being co-originated by Wells Fargo Bank, National Association, Goldman Sachs Bank USA, Bank of Montreal, Natixis Real Estate Capital and Societe Generale Financial Corp., per Fitch Ratings. It is secured by a warehouse and light industrial portfolio totaling 19M SF.
The 76 properties in the portfolio are spread across 18 states, with 15 properties in Minnesota, six in Georgia, six in Texas and five in Tennessee. The largest property is a 935K SF warehouse and distribution facility in Quakertown, Pennsylvania.
KBRA reported that the portfolio is 96% leased to 115 tenants.
BREIT’s full $104B portfolio of more than 4,500 properties is 90% concentrated in rental housing, industrial and data centers, according to BREIT’s second-quarter stockholder letter. Industrial properties make up 20% of the portfolio, second only to data centers, which account for 27%.
The REIT officially exited the self-storage space by offloading its last 79 self-storage assets and spent $3.3B on data center development through its data center platform QTS during Q2.
The disposition of its self-storage assets “reflects our broader strategy of actively managing BREIT’s portfolio and investing in our highest-conviction investment themes,” a Blackstone spokesperson said.
BREIT’s industrial portfolio includes last-mile infill warehouses near dense population centers, which benefit from e-commerce demand, the Q2 report said. Blackstone said it expects artificial intelligence-driven purchases — which are expected to reach $1T by 2030 — to further drive e-commerce growth.
Blackstone also saw data center-adjacent tenants account for 15% of new leases signed across its logistics platform in the last 18 months.
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