Dallas-based real estate investment and development firm Crow Holdings is selling a significant share in one of its investment portfolios to funds affiliated with Blackstone Real Estate.
Blackstone has agreed to purchase a 95% stake in the industrial portfolio for $718 million, with Crow Holdings and its partners retaining the remaining 5% ownership. The recently announced deal is expected to close before the end of the current quarter.
The portfolio comprises 25 Class A buildings covering six million square feet. Most of the assets are in high-barrier submarkets in Dallas and Houston.
“This transaction is another example of Blackstone Real Estate deploying capital during this period of market volatility. We are thrilled to acquire this high-quality portfolio located in some of the best performing U.S. industrial markets,” said David Levine, Co-Head of Americas Acquisitions for Blackstone Real Estate, in an April 10 press release.
“With limited vacancy and new construction starts down over 80% from the 2022 peak, logistics remains a high conviction theme for us; we are proud owners of more than $90 billion of warehouses in North America and nearly $170 billion in total around the world.”
Crow Holdings CEO Michael Levy says the Dallas-based firm is “excited” about the partnership opportunity.
“Our company was founded by Trammell Crow when he built his first warehouse in Dallas in 1948 – a building that we still own today. We are extremely proud of our team for developing such a high-quality portfolio that attracted Blackstone, a global leader in the logistics industry, and we look forward to the partnership’s possibilities,” said Levy.
Privately-held Crow Holdings was founded in Dallas in 1948 and currently operates 18 offices across the United States. The real estate firm manages $33 billion in assets and investments.
In February, The Dallas Express reported that Goldman Sachs was partnering with another Dallas-based real estate firm, Dalfen Industrial, to purchase an extensive portfolio of logistics buildings from Blackstone. The deal, valued at almost $300 million, includes 21 buildings covering over two million square feet in Dallas, Las Vegas, Cincinnati, and parts of Pennsylvania.
