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Blackstone Acquires $1.8 Billion Industrial Portfolio From Cabot

03.13.18

The Firm represented affiliates of Blackstone Real Estate Income Trust, Inc. (“BREIT”) in connection with its purchase of a 22 million-square-foot industrial portfolio from affiliates of Cabot Properties (“Cabot”) for $1.8 billion. The portfolio covers 146 properties primarily concentrated in Chicago, Dallas, Baltimore/Washington D.C., Los Angeles/Inland Empire, South/Central Florida, New Jersey and Denver. Current tenants include firms such as Amazon, FedEx, Coca-Cola, Fiat Chrysler and the U.S. Government. The acquisition is BREIT’s largest investment to date.

BREIT financed the acquisition with a $1.1 billion mortgage loan from The Prudential Insurance Company of America and New York State Teachers’ Retirement System, as well as a $200 million mezzanine loan from an affiliate of Teachers Insurance and Annuity Association of America.

BREIT is a non-traded REIT focused on investing in primarily stabilized income-generating commercial real estate properties diversified by sector with a focus on providing current income to investors. BREIT is externally managed by BX REIT Advisors L.L.C., a subsidiary of The Blackstone Group L.P.

The Simpson Thacher team included Sas Mehrara, Davis Coen, Danielle Jackson, Elliot Schwab, Robert W. Vogel, Willimina and Bromer (Real Estate); Andy Keller and Benjamin Wells (Capital Markets); Nancy Mehlman and Jasmine Hay (Tax); Michael Carnevale and Daniel Levien (Regulatory); Andrew Blau and Monisha Bhayana (Benefits); Steven DeLott (Insurance); and Jeanne M. Annarumma (ERISA).