Blackstone’s acquisition includes an office portfolio of 1.1 million square feet.
The PS Business Complexes transaction is worth $7.6 billion and includes office and industrial parks.
Blackstone, a global leader in the private equity industry, has acquired commercial, industrial, and retail properties in Orange County totaling 1.1 million square feet.
According to the Orange County Business Journal, the investor from New York made the purchase of the real estate as part of the larger $7.6 billion acquisition of PS Business Parks, which was finalised last month and took place in Glendale.
In the all-cash transaction, affiliates of Blackstone Real Estate were able to acquire 96 properties from the PSB real estate investment trust. Of these, 57 were located in the state of California, and three of the most significant assets were located in Orange County.
They consist of a business park in Laguna Hills with a square footage of 513,000, another business park in Lake Forest with a square footage of 297,000, and an industrial space in Buena Park with a square footage of 317,000.
The acquisition of PS Business Parks by Blackstone, which was announced in April and finished off at the end of July, adds 27 million square feet to the company’s portfolio. Link Logistics Real Estate, which Blackstone founded in 2019 to manage its logistics facilities, will be in charge of the operation of a significant portion of the OC assets.
One of the new properties is called The Row, and it is located in Laguna Hills at 23512 Commerce Center. It has a total area of 513,000 square feet. A building that is 33,792 square feet and is occupied by Jerome’s Furniture is among the tenants. Other tenants include Sit ‘n Sleep, Lamps Plus, Lakeshore Learning, and Big Air Trampoline.
Blackstone also purchased the Canada Business Center in Lake Forest, which is a business park that spans 297,000 square feet and contains 16 different commercial buildings at 22642 Lambert Street.
And finally, the transaction includes the Buena Park Industrial Center, which is located at 6700 8th Street in Buena Park and has a total space footage of 317,000 square feet.
The PS Business Parks deal, at a price of $187.50 per share, comes with approximately 2.2 million square feet of space in the Los Angeles market. This space is comprised of an industrial park with 540,000 square feet in Santa Fe Springs, an industrial park with 400,000 square feet in Cerritos, and a business park with 146,000 square feet in Culver City.
According to the Business Journal, PS Business Parks estimated that the gross carrying value of its OC properties was around 120 million dollars when it prepared its most recent annual report. A reading of the documentation connected to the portfolio sale reveals that the local assets would most likely trade for more than twice that amount on an allocated basis. This conclusion was reached after analysing the records.
