The Blackstone Group has acquired a 22-building, 2.5-million-SF industrial portfolio scattered around the Minneapolis-St. Paul region from Prologis for $246.5 million, SBJ first reported. The private equity giant flipped 1-million-SF of the package for a total of $88 million on the day of the closing.
The Upshot: The primary transaction between Blackstone and Prologis would work out to about $98.60 per SF, about 40.9% above the going market rate for industrial stock in the Twin Cities, which stands at around $70 per SF. Though that is a handsome sum by local standards, it’s a bargain when compared to other markets and the U.S. at large, which perhaps explains Blackstone’s unstinting appetite for assets in the region. Nationally, the average market price for industrial is about $110 per square foot, according to CoStar analytics.
Dig Deeper: Over the past three years, Blackstone has spent roughly $1.41 billion on industrial properties in Minneapolis-St. Paul, CoStar noted, making it the region’s most active buyer. It’s most notable deal occurred last year in April 2020, when it paid CSM more than $500 million for a 59-property, 7 million-SF portfolio in Denver and Minneapolis.
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