In what we’re told is the largest single industrial real estate portfolio sale in the US in 2012, affiliates of Blackstone Real Estate Partners VII acquired DEXUS Property Group’s US central portfolio for $770 mil. The central portfolio consists of 65 industrial properties with a total of roughly 16.7 msf ($46/sf) of space. The Los Angeles office of Eastdil Secured brokered the transaction on behalf of both parties.
The properties are located within 11 metropolitan areas throughout the Midwest and East Coast, including Dallas, Minneapolis, San Antonio, Atlanta, North Virginia, Baltimore, Orlando, Columbus, Charlotte, Phoenix and Cincinnati. All told, they contain 128 buildings with about 350 tenants and were about 90% leased at the time of sale. Major tenants at some of the properties include Michaels Stores, General Services Administration, Shaw Industries, Bergstrom Climate, X0 Communications, Del Monte Foods, Walt Disney World Company, Universal, Iron Mountain, and FedEx.
The portfolio also includes three recently completed large Class A distribution facilities leased to Whirlpool Corporation. The facilities, in Atlanta, Columbus and Orlando, total 3.6 msf of space and were all constructed within the last four years.
Commenting on the transaction, DEXUS Property Group CEO Darren Steinberg said, “The settlement of the central portfolio is a good result and allows our US team to focus on the remaining west coast portfolio and to leverage our local industrial real estate management and development expertise going forward. Since being established in June 2010, DEXUS’s US team has assumed direct asset management control of the west coast portfolio and taken an active role in leasing and managing the central portfolio.
The residual investment, representing approximately 7% of total Group assets, is a high quality portfolio concentrated in the west coast markets. These are highly attractive markets, with high levels of demand from tenants, strong market fundamentals and good revenue prospects.
DEXUS now owns and manages 24 US industrial properties totaling more than 6.8 msf and valued at approximately $550 mil. DEXUS also manages properties valued at approximately $200 mil on behalf of US third party clients.
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