Blackstone’s Link Logistics Pays $184M for Home Depot Warehouse in Southern Calif.
By Greg Cornfield December 29, 2023 2:00 pm
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The biggest name in commercial real estate is expanding deeper into the nation’s top market for warehousing and distribution space.
Link Logistics — Blackstone (BX)’s arm for last-mile industrial real estate — put down $183.9 million to acquire a nearly 800,000-square-foot warehouse leased to Home Depot. Industrial Developments International (IDI Logistics) developed and sold the Inland Empire asset for about $230 per square foot, according to data provided by Vizzda.
The property spans about 53 acres and includes outdoor lumber storage at 400 East Ellis Avenue in Perris, Calif., just off Interstate 215.
It’s unclear if the warehouse has opened for operations, but earlier this month, Home Depot started advertising for job openings at the 400 Ellis property. The Home Depot building is the smallest of a three-building, 2.8 million-square-foot industrial development along Ellis by IDI, and it will eventually include a railway line operated by BNSF, according to the Riverside Press-Enterprise.
IDI did not return requests for comment. Link Logistics confirmed the deal. Terms of the Home Depot lease were not disclosed.
The home improvement company is responsible for several large-scale deals in Southern California the past few years. Home Depot leased a 529,866-square-foot asset built by Duke Realty in Irwindale in L.A. County in August 2022, a few months after a separate 1.1 million-square-foot lease with Clarion Partners in Ontario, Calif.
Southern California continues to outpace the rest of the country in terms of industrial rent growth, having the only three markets where rents grew by double digits in the last 12 months, according to the most recent market report from CommercialEdge. Rents increased 15.2 percent in the Inland Empire, 12.7 percent in Los Angeles and 11.6 percent in Orange County.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
