Blackstone, a private equity company based in New York City, will purchase Irvine, Calif.-based LBA Realty's portfolio of logistics centers for $1.5 billion, according to The Wall Street Journal.
Through the transaction, Blackstone will acquire 12 million square feet of property mostly on the West Coast. "Once closed, the deal will represent Blackstone's biggest purchase of U.S. distribution centers since reentering the market. It exited the logistics business in 2015 when it sold IndCor Properties for $8.1 billion."
The rise in popularity of e-commerce has led to high investor demand for logistics properties, even as the demand for other commercial real-estate areas like office buildings and malls has slowed.
Logistic company executives say their businesses are greatly benefiting from the heightened importance placed on distribution in retail, as well as other industries, as consumers turn to online shopping rather than physical marketplaces.
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