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Blackstone’s Link Logistics has unloaded a portfolio of relatively small industrial properties in Southern California, the top market in the nation for warehouse real estate.
DRA Advisors, in partnership with George Urban Advisors and Five Horizons Partners, acquired the 851,131-square-foot portfolio spread over 45 buildings in Los Angeles and Orange counties. CBRE announced the sale but declined to disclose the value of the deal. Property records show the real estate traded for approximately $262.5 million, or roughly $308 per square foot.
The properties were originally acquired by Link Logistics in July 2022 as part of its $7.6 billion purchase of PS Business Parks. The buildings range in size from 7,580 square feet to 31,918 square feet, and are 98 percent leased.
“Small-bay industrial, with smaller suites, strong tenant retention, and a low cost of operation is gaining favor with investors,” Mike Longo, senior vice president at CBRE, said in a statement. “The typically shorter-term leases allow the landlord to adjust rents more quickly to market. It’s the apartments of industrial real estate, except with a lack of new supply and high barriers to entry.”
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
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