Blackstone Sells Northern California Assets to LBA Logistics for $124.2MM

Blackstone, LBA Logistics, Sacramento, Fremont, Amazon, Tesla,FedEx,
Courtesy of Will Truettner.

By Meghan Hall

New York-based Blackstone Group and LBA Logistics have struck many commercial property deals in the past, and now another two transactions have been added to the mix. In June, Blackstone sold five Fremont industrial properties for $67.62 million, and another four Sacramento assets for $57 million, according to public documents reviewed by The Registry. Combined, the deals total about $124.2 million and closed June 17th and 18th, according to public records.

The Fremont properties sold included:

  • 47513 Westinghouse Drive, a 65,384 square foot property for $20.4 million;
  • 47621 Westinghouse Drive, 49,779 square foot building, for $18.4 million;
  • 255 Fourier Ave., which totals 52,890 square feet, for $13.06 million.
  • 47650 Westinghouse Drive, a 24,800 square feet, for $7.4 million;
  • 47600 Westinghouse Drive, a 24,800 square feet asset that also sold for for $7.4 million

The assets are part of the Fremont Research Center and Fremont Research Park. Companies in the Area include Optoma Technologies, Alta Manufacturing, Bay Area Production Services and more.

In Sacramento, Blackstone sold the following assets: 

  • 2701 Fifth St. in Sacramento sold for $26.7 million and totals 72,000 square feet;
  • The 193,000 square foot 1427 N. Market Blvd. in North Natomas traded for $24.2 million;
  • 2703 Fifth St. in Sacramento sold for $4.21 million. The property totals 40,000 square feet;
  • 6101 Sky Creek Drive, a 5,190 square foot asset, sold for $1.73 million.

In January of this year, Blackstone announced the recapitalization of two LBA industrial portfolios valued at $1.6 billion. As a result, Blackstone acquired 60 percent combined interest across 71 assets totaling 9.5 million square feet of space. The portfolio is located in locations like Fremont and Sacramento: West Coast, last-mile markets with strong industrial fundamentals. 

Currently, Blackstone’s assets total $50.3 billion in value, and the REIT owns 1,463 properties. According to the company’s website, its portfolio is 95 percent occupied. LBA Logistics, based in Irvine, Calif., targets last mile, infill and regional distribution center locations. Its customers include Amazon, GM, FedEx, Tesla, UPS and Walmart, among others.

West Coast Commercial Real Estate News