NEW YORK CITY — New York City-based Blackstone Real Estate Advisors has closed on its acquisition financing for a previously announced industrial portfolio purchase. Wells Fargo & Co. is providing $514 million in the form of a syndicated, senior loan with a 5-year term.
Last month, Blackstone entered into an agreement to acquire a 180-property industrial portfolio from ProLogis. The properties total approximately 23 million square feet, consisting mostly of warehouse and logistics space, and are located in 28 major markets across 19 states. The portfolio is 95 percent leased to more than 500 tenants, with an average lease term of 34 months. The weighted average of the properties is 23 years. As part of the agreement, ProLogis is retaining a $190 million equity interest in the portfolio.
“We're proud to be a part of a large transaction like this one,” said Chip Fedalen, executive vice president and head of Wells Fargo's Real Estate Banking Group, in a statement. “Wells Fargo has a long history in the commercial real estate sector, and we continue to actively seek financing opportunities for attractive real estate assets with good quality sponsors.”
— Coleman Wood