Blackstone Sells $1 Billion Of California Warehouses To Rexford

(Bloomberg) -- Blackstone Inc. sold 48 warehouses in Southern California to Rexford Industrial Realty Inc. for $1 billion. 

The properties total more than 3 million square feet (279,000 square meters), according to a statement Thursday. They are 98% leased and mostly located in Los Angeles and Orange counties. Rexford’s acquisition was handled in separate transactions with Blackstone Real Estate.

The investments “represent a significant opportunity to drive accretive cash flow growth, increased operating margins and long-term creation,” Howard Schwimmer and Michael Frankel, co-chief executive officers of Rexford, said in the statement. 

Rexford funded the deals with proceeds from the company’s recent exchangeable senior note offerings and cash.

While commercial real estate s have slumped over the past two years as borrowing costs soared, industrial properties have held up relatively well, compared with offices or apartments. 

Industrial properties remain a “high-conviction theme” for Blackstone, which owns $175 billion of warehouses globally, David Levine, co-head of Americas acquisitions for Blackstone Real Estate, said in the statement. 

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