Blackstone Sells $245M Sacramento Industrial Portfolio
Blackstone sold a 28-building, 1.9M-sf Sacramento industrial park for about $245M, a basis well under its own $169/sf print nine days earlier.
Blackstone has sold a 28-building, 1.9 million-square-foot industrial portfolio in Sacramento’s North Natomas submarket to Blue Rise Ventures and DRA Advisors for roughly $245 million, according to The Registry. Colliers brokered the sale and separately won the leasing assignment on 25 of the buildings for the new ownership group, per Connect CRE. The seller operated the park through Link Logistics, Blackstone’s industrial platform.
Why it matters
A large institutional owner exiting a 28-building Sacramento park is an underwriting comp for every developer and buyer pricing non-coastal warehouse right now, whether or not they touch this market. Blackstone has been an active seller of industrial product this year, and each disposition prints a fresh basis the next buyer has to underwrite against. The question this deal raises for developers is whether Blackstone is simply recycling capital out of a secondary market or signaling it sees less upside in warehouse broadly. Either read matters for anyone holding or building industrial product outside the coastal gateway markets.
The numbers
The reported $245 million price against 1.9 million square feet works out to about $129 a square foot, our own calculation from the disclosed figures. That basis lands well below the roughly $169 a square foot Blackstone’s Link Logistics got on July 29 selling a 38-building, 5.9 million-square-foot infill book to Stonemont Financial Group and PCCP, a deal we covered at close. The two are not a clean apples-to-apples match: that portfolio was 95% leased and spread across 14 higher-barrier infill markets, while occupancy on the Sacramento park was not disclosed in the sources reviewed. Still, a roughly $40-per-square-foot gap between two Link Logistics exits nine days apart is a real data point on how much market and lease-up quality is worth right now. The Sacramento basis sits closer to the roughly $116 a square foot Redfearn Capital and TPG AG paid in a separate, unrelated Southeast deal, covered here.
What’s next
Watch whether Colliers’ leasing push on the 25 assigned buildings lifts occupancy enough for Blue Rise Ventures and DRA Advisors to test a higher basis on a future exit, and whether Blackstone brings more secondary-market industrial to market following this and the July Stonemont deal. Track more of these prints on our industrial topic hub.