Blackstone is doubling down on bread-and-butter retail in Texas, following a sample of funding over the previous 12 months in grocery-anchored buying facilities throughout the nation.
The non-public fairness big is utilizing a floating-rate commercial mortgage-backed securities loan and $110.3 million of fairness to amass a 16-property, grocery-anchored portfolio throughout the Lone Star State, in accordance with a presale report from Fitch Rankings. Bisnow reported that the two-year, $331.2 million mortgage brings the whole acquisition worth to $441.5 million, together with $9.2 million in closing prices. The deal is slated to shut March 4.
Bloomberg first reported the financing construction. Blackstone declined to touch upon pricing however confirmed the acquisition, telling the outlet that grocery-anchored retail stays a “high-conviction” wager given sturdy sector fundamentals.
The almost 1.9 million-square-foot portfolio spans 11 properties within the Houston space, 4 in Dallas-Fort Price and one in San Antonio. Anchors embrace San Antonio-based H-E-B, Cincinnati-based Kroger and Indian meals grocer Keemat.
The biggest property is Westgate Market in West Houston, a 306,000-square-foot heart anchored by H-E-B and a Kohl’s, in accordance with Bisnow. On the different finish of the spectrum is Colony Plaza in Missouri Metropolis, a 26,000-square-foot strip center. The portfolio is greater than 96 % occupied, providing fast money stream in markets that proceed to learn from inhabitants progress.
A subsidiary of Morgan Stanley is anticipated to originate the CMBS mortgage, in accordance with Fitch. Carry out Properties, a Texas-focused retail operator specializing in grocery-anchored facilities, will handle the properties.
The acquisition provides to Blackstone’s increasing grocery holdings. In February 2025, the agency acquired Retail Alternative Investments Company, gaining 10.5 million sq. ft of grocery-anchored retail throughout 93 West Coast properties. Eight of the buying facilities are in Orange County, California, with transactions totaling $275 million, The Actual Deal reported on the time.
It additionally partnered on a $1.5 billion transaction in December to take the Alexander & Baldwin REIT non-public, Hawaii’s largest proprietor of grocery-anchored buying facilities.
— Eric Weilbacher
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