Three of the largest real estate transactions in the supply chain, logistics and network infrastructure space have been presented below. Additionally, two of the largest strip mall transactions, three of the largest real estate transactions involving the re-purposing of indoor malls and big box stores, and two of the largest cold storage transactions that occurred over the past five years have been presented below. Unfortunately, no transactions at a similar level of magnitude have been identified in the net lease space, as explained in the research strategy section.
Supply Chain, Logistics and Network Infrastructure
Three of the largest supply chain/logistics real estate transactions that occurred over the past five years include Blackstone’s purchase of warehouse assets from GLP for $18.7 billion, Blackstone’s purchase of Colony Capital’s industrial portfolio for $$5.9 billion, and Blackstone’s acquisition of a portfolio of 27 warehouses for $400 million.
Blackstone Bought a Record $18.7 Billion of Warehouse Assets from GLP
- Blackstone Group LP, the world’s largest manager of alternative assets, bought US industrial warehouse properties from Singapore-based logistics provider GLP on June 3, 2019.
- The portfolio of warehouses has been purchased for $18.7 billion, and both companies have referred to the deal as the largest private real estate transaction globally.
- The transaction included 179 million square feet of urban logistics assets, which represented almost 50% of Blackstone’s US industrial assets at the time.
- This deal is the largest in a series of logistics asset deals in 2019. An increase in e-commerce activity has led to an increase in investor interest for distribution and warehouse assets.
Blackstone Purchased $5.9 Billion Industrial Portfolio from Colony Capital
- Blackstone Real Estate Partners IX, an affiliate of Blackstone Group LP, acquired Colony Industrial, the industrial real estate arm of Colony Capital, on September 30, 2019.
- The business unit and a real estate portfolio mostly consisting of last-mile light industrial properties has been purchased for $5.9 billion.
- The real estate portfolio consists of 465 buildings in 26 US markets, totaling about 60 million square feet of space. Significant property concentrations are in Dallas, Atlanta, Florida, New Jersey and California.
Blackstone Acquired 27 Warehouses From CenterPoint Properties for $400 Million
- Blackstone acquired a portfolio of 27 warehouses in the northern Chicago suburbs and southeast Wisconsin from CenterPoint Properties on February 20, 2020.
- The deal, valued at about $400 million, includes 16 properties in Illinois and 11 in Racine and Milwaukee for a total of 4.9 million square feet.
Two of the largest strip mall real estate transactions in the past five years include Simon Property Group’s intended purchase of Taubman Centers for $3.6 billion and Kimco Realty Corporation’s acquisition of a strip mall in Portland for $131.8 million.
Simon Property Group Acquired Taubman Centers for $3.6 Billion
- Mall owner Simon Property Group agreed to acquire rival Taubman Centers on February 10, 2020.
- The acquisition was valued at $3.6 billion. Simon Property Group agreed to pay $52.50 for Taubman’s stock, representing a 51% premium to the stock’s closing price before the announcement.
- Simon Property Group mostly operates top-tier shopping malls, while Taubman owns, manages or leases 26 super-regional shopping centers in the US and Asia, including several strip malls.
Kimco Acquired Strip Mall in Portland for $131.8 Million
- Kimco Realty Corporation, the largest strip mall real estate investment trust in the US, agreed to acquire Jantzen Beach Center on July 12, 2017.
- The 746,000 square foot strip mall has been acquired for $131.8 million. The property is located at in northern Portland near the Oregon-Washington border.
- The shopping center, built in 1972, was 96% occupied at the time of sale by tenants including Home Depot, Target, TJ Maxx, and Best Buy.
Re-purposing Indoor Malls and Big Box Stores
Two of the largest real estate transactions involving the re-purposing of indoor malls and big box stores that occurred over the past five years include CIM Group’s acquisition of Baldwin Hills Crenshaw Plaza in order to convert it into office space and Google’s purchase of the Manhattan Chelsea Market building in order to use it as an office location. Additionally, Amazon is in talks with Simon Property Group to re-purpose some of its malls as Amazon distribution centers.
CIM Group bought Baldwin Hills Crenshaw Plaza for $100 Million
- Property developer CIM Group purchased the struggling Baldwin Hills Crenshaw Plaza indoor shopping mall on May 12, 2020, planning to convert some of the largest stores into office space.
- CIM Group purchased the property for more than $100 million from Capri Investment Group. Although the exact figure has not been disclosed, experts believe that it is probably less than the $136 million that Capri paid for the property in 2006.
- The plan to re-purpose the property into office space is driven by the fact that the mall is located on a soon-to-open light rail station. However, City Councilman Marqueece Harris-Dawson might object to the idea, since he is already upset that CIM announced the deal without talking to his office first.
Google Purchased Chelsea Market to Turn it Into an Office Building
- Google purchased the Manhattan Chelsea Market building from Jamestown Properties on March 20, 2018, in order to turn it into office space for the company’s employees.
- The $2.4 billion sales contract includes the right to enlarge the building by adding up to 300,000 square feet, or about eight stories.
- While Google did not reveal its exact plans for the building, it did state that “with our purchase of the building, we’ve agreed to work together with Jamestown [Properties] to ensure a smooth transition with little or no impact to the community and tenants of the building.” Therefore, the transition will likely take several years.
Amazon and Simon Property Group are Discusssing Turning Some Malls into Distribution Centers
- The Wall Street Journal reported on August 9, 2020, that Amazon is negotiating with Simon Property Group to turn some of its malls into Amazon distribution centers.
- The deal is still in the early stages, and not many details have been disclosed up to now, but the stock market reacted favorably to the news, with Simon Property Group’s shares rising 7% after the announcement.
Two of the largest cold storage real estate transactions that occurred over the past five years include Americold’s acquisition of Cloverleaf Cold Storage for $1.24 billion and Americold’s acquisition of Nova Cold Logistics for $254 million.
A REIT Acquired the Fifth Largest U.S. Temperature-Controlled Operator
- The world’s largest publicly traded real estate investment trust (REIT) that focuses on temperature-controlled warehouses, Americold Realty Trust acquired Chiller Holdco, LLC, also known as Cloverleaf Cold Storage, on April 16, 2019.
- The purchase price for the fifth largest cold storage provider in the United States by refrigerated cubic feet was $1.24 billion. The company was sold by Cloverleaf management and a group of investors led by Blackstone.
- Americold acquired 132 million refrigerated cubic feet in 22 facilities across 9 US states. Facilities located in the Central and Southeastern United States are “complementary to Americold’s existing geographic reach and expand the Company’s focus in the growing protein business segment.”
Americold Purchased Canadian Cold Storage Operator for $254 million
- Americold Realty Trust agreed to purchase Canadian cold storage operator Nova Cold Logistics from Brookfield Business Partners L.P. on November 21, 2019.
- The REIT purchased Nova Cold Logistics for $254 million in order to “expand its position in Canada” and because Americold’s current customer base has significant overlap with Nova Cold’s.
- Americold had three facilities in Canada prior to the purchase. It joined these with Nova Cold’s portfolio of three locations totaling 23.5 million cubic feet with approximately 81,000 pallet positions, and additional acreage for future expansions. The facilities are located in Toronto, Calgary, and Halifax .
We could not identify any large real estate transactions over the past five years that involved net lease opportunities with quick service restaurants or convenience stores. We have conducted a press search, and then we have looked into transaction databases, including the Real Deal. We have also explored the portfolios of major commercial real estate investors like Kushman and Wakefiled and the CBRE Group in order to find any new deals involving net leases to quick service restaurants. Unfortunately, these methods did not yield any particularly relevant results. We have managed to find several deals valued in the tens of millions of dollars, but we have decided not to include them because the other deals presented in this report are at least 10 times as large. We have also found Broadstone Net Lease’s acquisition of a $735.7 million industrial portfolio, but we have decided not to include it because the deal mostly involved office space, manufacturing and warehouse facilities, and not quick service restaurants or convenience stores.