The Blackstone acquisition of PS Business Parks for $7.6 billion has revealed another two dozen acquisitions in Signal Hill.
Blackstone Real Estate, based in New York, picked up a portfolio of 24 commercial properties within the small city surrounded by Long Beach in conjunction with the PSB takeover, the Long Beach Business Journal reported.
It acquired Glendale-based PS Business Parks last month. The all-cash deal yielded 96 properties from the real estate investment trust, including 57 in California.
The acquisitions are slowly coming to light, including two business hotels in Sunnyvale for $99 million and 1.1 million square feet of office, industrial and retail space in Orange County.
The PS Business Parks deal brings to Blackstone about 2.2 million square feet of space in the Los Angeles market, including a 540,000-square-foot industrial park in Santa Fe Springs, a 400,000-square-foot industrial park in Cerritos and a 146,000-square-foot business park in Culver City.
Now it appears the PS Business Parks deal allowed Blackstone to snag two dozen properties containing a total 414,000 square feet in Signal Hill for $175 million, according to the Business Journal.
The newspaper didn’t give more details about the purchase.
Brian Russell, vice president of Kinnery’s Brokerage House in Long Beach, said the purchase will likely be a mixed bag for current and prospective tenants of the properties. On the plus side, the sale will likely be followed by capital improvements by Blackstone.
The continued consolidation of properties under Blackstone, however, could result in higher lease rates as tenants have fewer landlords to choose from, Russell said.
“They are on the march with a seemingly endless acquisition budget,” Russell told the Business Journal. “Lease rates will stay strong and may indeed continue to rise. But will we have stable ownership in return? Yes, we will.”
— Dana Bartholomew
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