(Bloomberg) -- Blackstone Inc. sold 48 warehouses in Southern California to Rexford Industrial Realty Inc. for $1 billion.
The properties total more than 3 million square feet (279,000 square meters), according to a statement Thursday. They are 98% leased and mostly located in Los Angeles and Orange counties. Rexford's acquisition was handled in separate transactions with Blackstone Real Estate.
The investments “represent a significant opportunity to drive accretive cash flow growth, increased operating margins and long-term value creation,” Howard Schwimmer and Michael Frankel, co-chief executive officers of Rexford, said in the statement.
Rexford funded the deals with proceeds from the company's recent exchangeable senior note offerings and cash.
While commercial real estate values have slumped over the past two years as borrowing costs soared, industrial properties have held up relatively well, compared with offices or apartments.
Industrial properties remain a “high-conviction theme” for Blackstone, which owns $175 billion of warehouses globally, David Levine, co-head of Americas acquisitions for Blackstone Real Estate, said in the statement.
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