A 13-property, three-state industrial portfolio totaling 2.1 million square feet of real estate was sold in a $358 million leaseback deal, according to JLL Capital Markets.
The portfolio, located in northern New Jersey, Pennsylvania’s Lehigh Valley and California, was sold by Iron Mountain Inc., a storage and information management services company, to Blackstone Real Estate Income Trust Inc., part of New York’s Blackstone Group, JLL said in a news release.
Boston-based Iron Mountain signed a 10-year lease with 20 years’ worth of options to remain in the facilities, selling them as part of its ongoing capital recycling program, with intent to reinvest the proceeds in higher-growth areas of its business.
The JLL Capital Markets team representing the seller included: Jason DeWitt, senior director; Robert Dmytryk, senior managing director; John Hugenard, senior managing director and co-head of JLL’s Industrial Capital Markets Group; Brian Shanfeld, Mark Detmer, John Plower and Bruce Strasburg, senior managing directors; Jordan Avanzato, director; and Anthony Walters and Brian Longee, analysts.
“The closing of this transaction demonstrates the market’s increasing appetite for high-quality and well-located industrial real estate,” DeWitt said in a prepared statement. “For Iron Mountain, the portfolio sale is a continuation of their ongoing capital allocation strategy, which aims to unlock capital for investment into key business growth drivers, while maintaining long-term control of their real estate operations.”
Iron Mountain’s New Jersey data center is located in Edison, according to the firm’s website.