Prologis Buys FedEx Facility for $97M as Part of Recent Blackstone Deal
Inland Empire distribution warehouse a small part of the $3.1 billion deal announced in June
By Greg Cornfield August 8, 2023 2:30 pm
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Blackstone (BX) has unloaded a FedEx distribution facility in Southern California as part of a larger $3.1 billion deal announced earlier this summer with fellow industrial behemoth Prologis (PLD).
The 311,363-square-foot asset sold for $96.6 million, or $310.25 per square foot, according to Vizzda. That’s higher than the $259-per-square-foot average sales price for industrial space in the first half of the year in the Inland Empire.
The seller entity is tied to Gramercy Property Trust, which was acquired by Blackstone in 2018. The facility was built in 2014 on 36 acres at 3255 and 11600 Cactus Avenue in Bloomington, Calif., in an industrial corridor that also includes distribution facilities for Amazon and Walmart, among other retailers.
In late June, Prologis announced a deal to acquire nearly 14 million square feet of industrial properties from Blackstone-run funds for $3.1 billion. It includes properties in Atlanta, Baltimore and Washington, D.C., California, Dallas, Las Vegas, New York and New Jersey, Phoenix and South Florida. The company plans to hold all of the properties acquired.
“These high-quality properties are complementary to our portfolio and fit perfectly into our long-term strategic plan for growth,” Prologis’ president, Dan Letter, said in a statement in June.
More than $2.44 billion in industrial asset sales — by far the most in the nation — closed in the first six months of the year in the Inland Empire, according to a recent report by CommercialEdge. Southern California also continues to see the largest rent gains in the nation, with in-place rents jumping an astounding 17.4 percent in the Inland Empire over the last 12 months.
“Where you invest matters, and this transaction demonstrates the exceptional demand for high-quality warehouses,” said Nadeem Meghji, head of Blackstone Real Estate Americas. Blackstone said it owns $100 billion of warehouses in North America and $175 billion globally.
Prologis said it owns 1.2 billion square feet of logistics real estate in 19 countries.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
