Blackstone Sells Medley Warehouse to Prologis for $51M

Prologis bought a Medley warehouse for $50.9 million as part of a $3.1 billion purchase of a nationwide portfolio of industrial properties from Blackstone. 

San Francisco-based Prologis bought the Pan American North Business Park building at 10733-10763 Northwest 123rd Street from Blackstone, according to records and real estate database Vizzda. 

Completed in 2013, the nearly 188,000-square-foot building is on 8.8 acres, records and Vizzda show. The deal breaks down to $271 per square foot. 

Tenants include aircraft maintenance firm Aerotech OPS, logistics provider Geodis and steel fabricator Jansteel USA.

Under the larger $3.1 billion deal, Prologis bought nearly 14 million square feet of industrial space across nearly 70 properties in South Florida, the New York City metro area and Dallas. 

Prologis, led by Hamid Moghadam, is a logistics real estate buyer and developer with a portfolio of over 1.2 billion square feet in 19 countries, according to the firm’s website. The publicly traded firm has been on a growth path, buying Indianapolis-based industrial real estate investment trust Duke Realty last year in a deal valued at roughly $23 billion. 

Last year, Prologis sold a 5.4 million-square-foot nationwide portfolio to Equus Capital Partners for a reported $900 million. 

The deal included the $239.2 million sale of the 1 million-square-foot Pompano Business Park on the southwest corner of North Powerline and West Sample roads in Pompano Beach. The deal also included the $41 million sale of a pair of warehouses at 300 Northpoint Parkway and another building at 1400 Northpoint Parkway in West Palm Beach. 

In South Florida, Prologis developed the Beacon Lakes business park in west Miami-Dade County and plans to expand it with four warehouses spanning more than 500,000 square feet on 55 acres. 

Led by Stephen Schwarzman, Blackstone is a New York-based alternative investment firm with $991 billion of assets under management as of March, according to its website. 

In June, it sold a cold storage facility at 13801 Northwest 112th Avenue in Hialeah Gardens for $43 million to Miami-based Boxer US. That followed Blackstone and its subsidiary Link Logistics paying $28.6 million for a Whole Foods Markets distribution center at 2700 Northwest Street in Pompano Beach. 

The Medley warehouse sale comes amid a drop in South Florida industrial deals due to expensive financing. Avison Young reported that deal volume hit $58.5 million in the first quarter, down from over $200 million during the same period of last year.