Blackstone’s Link Logistics Sells Light Industrial Portfolio for $1.8B

As the nation’s warehousing space demands shift, a joint venture is putting down $1.81 billion for a 90 percent leased light industrial portfolio across four states.

BKM Capital Partners and Kayne Anderson Real Estate on Wednesday announced the acquisition of the 8.5 million-square-foot portfolio from Link Logistics, the industrial arm of real estate titan Blackstone.

It’s the largest-ever acquisition deal for Newport Beach, Calif.-based BKM, and it positions the joint venture as one of the largest owner-operators of light industrial space in the nation with 15 million square feet under management.

“It not only underscores the importance of deep operating expertise in this sector, but also adds meaningful scale to our platform at a time when institutional interest in the light industrial segment is rapidly accelerating,” Brian Malliet, BKM’s founder, CEO and chief investment officer, said in a statement.

The portfolio includes nearly 2,000 units in 275 buildings on 51 multi-tenant properties across infill markets in Southern California, Washington, Texas and Georgia. BKM and Kayne Anderson plan to upgrade the exteriors, roofs and HVAC systems for the vacant space, and also reduce the overall office space from 37 percent to 33 percent of the properties.

“We continue to focus on sectors where we see durable demand drivers and the opportunity to create value through scale, vertical integration and operational expertise,” said Al Rabil, co-founder and CEO of Kayne Anderson. “Multi-tenant light industrial remains a highly fragmented segment with compelling fundamentals.”

Truist Securities served as financial adviser to Kayne Anderson Real Estate.

Nineteen properties with 3.1 million square feet — making up 37 percent of the portfolio — are in Southern California’s Inland Empire, Los Angeles and Orange County.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.