Blackstone Real Estate to Acquire 6M SF Industrial Portfolio Developed by Crow Holdings for $718M

Rhea-AI Summary

Blackstone (NYSE: BX) has agreed to acquire a 95% stake in an industrial portfolio from Crow Holdings for $718 million. The portfolio comprises 25 Class A buildings totaling 6 million square feet, primarily located in Dallas and Houston's high-barrier submarkets.

Crow Holdings and its partners will maintain a 5% ownership in the portfolio. The acquisition aligns with Blackstone's logistics-focused investment strategy, where they currently own over $90 billion of warehouses in North America and nearly $170 billion globally. The transaction is set to close in the second quarter of 2025.

The deal comes at a time when the logistics sector shows strong fundamentals, with vacancy and new construction starts down more than 80% from the 2022 peak.

Positive

• Strategic expansion in top-performing U.S. logistics markets
• Portfolio located in high-barrier submarkets with vacancy
• Class A property portfolio indicating premium quality assets
• Market conditions favorable with construction starts down 80%
• Maintains significant market presence with $90B North American warehouse portfolio

Negative

• Significant capital deployment during market volatility period
• Extended closing timeline to Q2 2025 may pose execution risks

Insights

Real Estate Investment Expert

Blackstone's $718 million acquisition of a 6 million square foot industrial portfolio represents strategic positioning in the logistics sector during an advantageous market cycle. At approximately $120 per square foot, this transaction targets high-barrier submarkets in Dallas and Houston—two of America's strongest-performing logistics hubs with robust population growth and supply chain infrastructure.

The portfolio's composition of 25 Class A buildings indicates premium quality assets that typically command higher rents and maintain stronger occupancy through market cycles. Blackstone's emphasis on " vacancy and construction starts down 80% from the 2022 peak" reveals their counter-cyclical approach—acquiring quality assets when development pipeline constraints will likely support future rent growth.

The 95/5 ownership structure with Crow Holdings maintains developer alignment while allowing Blackstone to control the investment thesis. For context, this acquisition represents a minor addition to Blackstone's massive $90 billion North American warehouse holdings, demonstrating their continued conviction in logistics real estate fundamentals despite broader market uncertainty.

The timing is particularly notable as industrial REITs have experienced yield compression recently, suggesting Blackstone sees value that public markets may be underappreciating. This transaction reinforces their position as the dominant global player in logistics real estate, providing them additional scale advantages in tenant relationships and operational efficiency.

Financial Analyst

This $718 million industrial portfolio acquisition demonstrates Blackstone's capital deployment strategy during market volatility—a hallmark of their opportunistic approach. For context, while substantial, this transaction represents less than 1% of Blackstone's global warehouse holdings ($170 billion), making it incrementally positive rather than transformative for BX shareholders.

The deal structure—Core+ funds acquiring 95% with Crow Holdings retaining 5%—optimally balances Blackstone's capital deployment goals with maintaining developer skin-in-the-game. This aligns with their strategy of partnering with proven developers while controlling investment decisions.

Blackstone's logistics thesis centers on supply-demand dynamics, with construction starts plummeting 80% from peak while e-commerce and reshoring continue driving warehouse demand. This acquisition positions them to potentially benefit from rent growth in supply-constrained submarkets.

The Q2 2025 closing timeline suggests standard due diligence periods for a portfolio this size. For BX investors, this transaction reinforces management's consistent execution in deploying capital into their highest-conviction sectors, particularly notable given broader commercial real estate market challenges. The deal also showcases Blackstone's competitive advantage in sourcing and executing large-scale transactions through their extensive industry relationships and reputation as a reliable closer.

NEW YORK & DALLAS--(BUSINESS WIRE)-- Blackstone (NYSE: BX) and Crow Holdings, a leading real estate investment and development firm, today announced that Core+ funds affiliated with Blackstone Real Estate have agreed to acquire a 95 percent stake in an industrial portfolio developed by Crow Holdings for $718 million. Crow Holdings and its partners will retain 5 percent ownership. The portfolio consists of 25 Class A buildings totaling 6 million square feet and is predominantly located in high-barrier submarkets in Dallas and Houston, two of the top-performing U.S. logistics markets.

David Levine, Co-Head of Americas Acquisitions for Blackstone Real Estate, said: “This transaction is another example of Blackstone Real Estate deploying capital during this period of market volatility. We are thrilled to acquire this high-quality portfolio located in some of the best performing U.S. industrial markets. With limited vacancy and new construction starts down over 80% from the 2022 peak, logistics remains a high conviction theme for us; we are proud owners of more than $90 billion of warehouses in North America and nearly $170 billion in total around the world.”

Michael Levy, Chief Executive Officer at Crow Holdings, said: “We are excited about the opportunity to partner with Blackstone in this investment portfolio. Our company was founded by Trammell Crow when he built his first warehouse in Dallas in 1948 – a building that we still own today. We are extremely proud of our team for developing such a high-quality portfolio that attracted Blackstone, a global leader in the logistics industry, and we look forward to the partnership’s possibilities.”

The transaction is expected to close in the second quarter of 2025.

About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has US $315 billion of investor capital under management. Blackstone is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, data centers, residential, office and hospitality. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone’s Core+ business invests in substantially stabilized real estate assets globally, through both institutional strategies and strategies tailored for income-focused individual investors including Blackstone Real Estate Income Trust, Inc. (BREIT). Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).

About Crow Holdings
Crow Holdings is a privately held real estate firm founded in 1948 based in Dallas, Texas. The company’s business activities include a leading real estate development and investment platform, an expanding traditional and renewable energy business, and broader private equity investment capabilities. With 18 offices across the U.S., Crow Holdings’ local, on-the-ground presence amplifies its hands-on capabilities across a broad range of investment strategies and ventures in partnership with leading institutional and individual investors. The firm manages $33 billion in assets and investments across a diversified business and investment portfolio rooted in its founding principles of partnership, collaboration, and alignment of interests. For more information, please visit: www.crowholdings.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250409751960/en/

Adam McGill

amcgill@crowholdings.com

Ruby Wald

Ruby.Wald@blackstone.com

Source: Blackstone

FAQ

What is the value of Blackstone's industrial portfolio acquisition from Crow Holdings?

Blackstone is acquiring a 95% stake in the industrial portfolio for $718 million, with Crow Holdings retaining 5% ownership.

How many square feet and buildings are included in BX's new industrial portfolio purchase?

The portfolio includes 25 Class A buildings totaling 6 million square feet, primarily in Dallas and Houston markets.

When will Blackstone's $718M industrial portfolio acquisition close?

The transaction is expected to close in the second quarter of 2025.

What is the current state of new construction in the logistics market according to BX?

New construction starts are down over 80% from the 2022 peak, with vacancy in the market.

How large is Blackstone's current warehouse portfolio in North America?

Blackstone owns more than $90 billion of warehouses in North America and nearly $170 billion globally.