A consortium of five major banks is set to co-originate a $1.2 billion commercial mortgage-backed securities loan next month on a 61-property industrial portfolio owned by Blackstone Real Estate Partners VIII.
The loan is one of the largest single-borrower industrial CMBS transactions of the past two years. The deal also marks the third time Blackstone has successfully tapped the CMBS market against essentially the same portfolio, having completed similar financings in 2021 and 2023.
That track record itself signals ongoing lender appetite for the long-term value of the assets despite a choppy industrial leasing environment.
Wells Fargo, Bank of America, Morgan Stanley, Goldman Sachs and Natixis Real Estate Capital are expected to jointly fund the loan, reflecting a collective bet that the portfolio's rent upside will resonate with bond investors seeking institutionally managed industrial exposure, according to bond rating analysis of the upcoming CMBS deal by Fitch Ratings and Kroll Bond Rating Agency.
The lenders' confidence appears rooted in demonstrated leasing momentum that points to significant below-market rents across the portfolio.
Home Depot's recent renewal at Blackstone's Cranbury, New Jersey, property is the starkest illustration of that upside. The home goods retailer renewed its 772,000-square-foot lease at 61 Station Road, a deal that was set to expire a year from now, at a rent 132% above its previous rate.
The 7.4 million-square-foot portfolio, managed by Link Logistics Real Estate Management — Blackstone's affiliate and the largest U.S.-only industrial platform — spans eight states and 11 markets, with heavy concentration in the high-barrier Los Angeles and Inland Empire markets, at 42.7% of loan value, and New Jersey, at 30.1%.
Across the full portfolio, Link Logistics signed roughly 1.1 million square feet of new leases in 2025 at rents averaging 110.5% above prior rates, suggesting the existing rent roll is materially below what the market will bear, according to the bond rating firms' analysis.
Supporting the investment thesis further, the portfolio's net operating income has climbed 21.4% since 2022, driven by steady occupancy across more than 165 tenants. CoStar data cited by Fitch projects that national industrial vacancy will peak at 7.8% in the fourth quarter before declining — a macro backdrop the lenders appear to view as a tailwind, timing the financing to capture the recovery ahead.
Blackstone declined to comment to CoStar News.
Newmark Valuation & Advisory valued the portfolio at $1.7 billion in January, reflecting the premium assigned to well-located, institutional-quality industrial assets in supply-constrained markets.
Proceeds in the CMBS deal are set to retire about $967 million in existing debt while returning roughly $197 million to Blackstone.