Blackstone to Buy U.S. Logistics Assets from Colony Capital for $5.9 Billion

September 30, 2019

Willkie represented Colony Capital in the transaction, which marks a significant step for Colony as it implements its plan to focus on digital real estate and infrastructure.

Willkie client Colony Capital, Inc. (NYSE: CLNY) and Blackstone Real Estate Partners IX, an affiliate of Blackstone (NYSE: BX), announced that they have entered into definitive agreements for Blackstone to acquire Colony Industrial, the industrial real estate assets and affiliated industrial operating platform of Colony Capital, for an aggregate purchase price of $5.9 billion.

The Colony Industrial last-mile light industrial portfolio represents the substantial majority of the total transaction and comprises approximately 60 million square feet of infill, logistics assets across 465 light industrial buildings in 26 U.S. markets, with significant concentration in Dallas, Atlanta, Florida, northern New Jersey, and California. The transaction also includes Colony’s 51% ownership interest in a 4 million square foot portfolio of bulk distribution assets and the affiliated operating platform which manages the properties of both portfolios.

This transaction comprises one of the highest quality portfolios of last-mile logistics assets in the U.S. Colony Industrial was formed in December 2014 through Colony Capital’s acquisition of Cobalt Capital Partners, founded and led by Lewis D. Friedland. Since then, the portfolio has doubled in size and produced strong and consistent operating results. Willkie also represented Colony in the 2014 transaction with Cobalt.

The Willkie team representing Colony Capital was led by partners Adam Turteltaub, Thomas Henry and Jared Fertman, and included associates Christopher Gandia and Jacob Moss.