- Blackstone to acquire 16 Texas grocery-anchored retail properties for $441.5M.
- A $331M floating-rate CMBS loan and $110.3M equity will fund the deal.
- The portfolio spans 1.9M SF across Houston, Dallas-Fort Worth, and San Antonio.
- Perform Properties will manage the highly occupied, 96% leased portfolio.
Major Portfolio Acquisition
Blackstone has secured a $331M floating-rate CMBS loan to acquire a 16-property, grocery-anchored retail portfolio spread throughout Texas, reports Bisnow. Valued at $441.5M, the acquisition includes a $110.3M equity investment and is set to close March 4. The deal highlights Blackstone’s continued confidence in the grocery-anchored retail sector, which the firm calls a ‘high-conviction theme’ due to strong fundamentals.
Portfolio Details
The properties, totaling nearly 1.9M SF, are anchored by leading grocers including H-E-B, Kroger, and Keemat. Locations include 11 sites in Greater Houston, four in Dallas-Fort Worth, and one in San Antonio. Property sizes range from 26KSF to 306KSF, with average occupancy above 96%. Retail operator Perform Properties will handle management responsibilities.
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Financing and Management
The $331M loan will be originated by a Morgan Stanley subsidiary, according to Fitch Ratings. Total deal value incorporates $9.2M in closing costs. Blackstone’s latest purchase follows other major investments in the grocery-anchored segment, including the acquisition of Retail Opportunity Investments Corp. and participation in a $1.5B Alexander & Baldwin transaction.
Why It Matters
Grocery-anchored retail has been a focus for institutional investors due to its tenant stability and consistent shopper draw. Investor appetite has intensified as the sector posts record performance levels nationwide, with transaction volume and pricing reflecting renewed confidence in necessity-based retail. Blackstone’s Texas retail expansion reinforces the asset class’s momentum, especially in high-growth markets. The deal adds to Blackstone’s nearly $1T global real estate portfolio and underlines its commitment to core retail investment in the US.
