Blackstone’s industrial arm, Link Logistics, has significantly expanded its South Florida holdings with the acquisition of an eight-building industrial portfolio in Boynton Beach for $195.9 million. This strategic purchase adds over 800,000 square feet of prime industrial space to the firm’s already substantial portfolio in the region.
Key Takeaways
- Blackstone, through its Link Logistics affiliate, acquired an eight-building industrial portfolio in Boynton Beach for $195.9 million.
- The portfolio spans over 800,000 square feet and was acquired from Prologis.
- This acquisition represents a substantial increase in value since its last sale in 2010.
- The deal underscores Blackstone’s continued investment in the South Florida industrial market.
Strategic Acquisition Details
The expansive portfolio, comprising eight buildings across multiple addresses including High Ridge Road and Quantum Boulevard, was purchased from Prologis. The deal averages out to $244 per square foot for the 800,000-plus square feet of space. These facilities were constructed between 2000 and 2005 and are situated on a 53.6-acre site.
This latest transaction marks a significant appreciation for the properties, which last traded for $58.5 million in 2010, indicating a 235 percent increase in value over 16 years. The tenants in the acquired properties include a diverse range of businesses such as Atlas Event Rental, CarDrop Boynton Beach, QXO, and SK Stones.
Continued South Florida Expansion
This Boynton Beach acquisition is not an isolated event for Link Logistics in South Florida this year. The firm recently completed another major purchase in Pompano Beach for $163.1 million, acquiring a portfolio of warehouses. This follows a period of divestment in 2023 and early 2024, where Blackstone and Link Logistics offloaded industrial assets valued at $1 billion across Miami-Dade, Broward, and Palm Beach counties.
Market Dynamics
While Palm Beach County’s industrial market experienced some softening in the first quarter with negative absorption and a slight increase in vacancy rates to 7.2 percent, the triple net asking lease rate saw a modest rise to $16.01 per square foot. Despite these fluctuations, investment activity remains robust, with other significant deals occurring in the region, such as Dalfen Industrial and Goldman Sachs selling a logistics center for $79.6 million.
Leasing activity has seen notable renewals, including American Tire Distributors, Horizon Distributors, and Global Technology Systems renewing their substantial leases in the area, indicating continued demand and stability within the market.
Sources
- Blackstone Buys $196 Million Florida Industrial Portfolio, The Real Deal.
- Blackstone Pays $195.9M for S. Florida Industrial Park, Connect CRE.