An affiliate of the Blackstone Group paid $12.45 million on April 18 for two industrial warehouse properties west of Orlando International Airport, part of a 38-asset national portfolio buy closed in the past week.
Located at 10950 Palmbay Dr. and 10805 Southport Dr., the two properties (Southport Center and Palmbay Center) lie just south of Tradeport Drive in the Liberty Park at AIPO, with warehouse buildings that total about 126,000 square feet of conditioned area.
The purchase by Blackstone's Real Estate Income Trust was part of a portfolio buy of 38 industrial infill properties from High Street totaling approximately 6 million square feet, for a combined $402 million before closing costs.
The High Street properties were spread across markets including Orlando, Atlanta, Chicago, Houston and Dallas, among others. Blackstone noted in a public filing that the portfolio was 97 percent leased to more than 90 tenants, and that over the last two years market rents have increased by 5 percent annually, with vacancy declining roughly 100 basis points to 5.2 percent.
Leasing for the two buildings in Orlando will continue to be managed by Jared Bonshire and David Perez of Cushman & Wakefield.
Blackstone funded the portfolio buy with a combination of cash on hand, $5 million from a line of credit, and $292 million in loans to its subsidiaries from various lenders.
The industrial investment by Blackstone follows other recent asset acquisitions in this market by the world's largest private equity firm.