Blackstone REIT and Corporate Office Properties Trust Complete Phase II of Data Center Shell Joint Venture
December 16, 2019 | James Sprow | Blue Vault
Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced the completion of a second transaction with Blackstone Real Estate Income Trust, Inc. (“BREIT”). COPT sold 90% of its interest in two single-tenant data center shell properties that contain 297,160 square feet of warehouse space to BREIT. BREIT and COPT will hold the centers in a joint venture previously announced on June 20, 2019. The aggregate property value implied from the transaction is approximately $80 million. COPT received $77 million in proceeds that it will deploy into its 2.6 million square foot pipeline of active development and redevelopment projects that, as of October 9, 2019, were 82% pre-leased.
About BREIT
Blackstone Real Estate Income Trust, Inc. is a nontraded REIT that is currently raising capital through a perpetual public offering of for share classes of common stock. The REIT announces estimated net asset values per share (“NAVs”) monthly, and has raised an estimated $9.97 billion in its offering through September 30, 2019. As of September 30, 2019, the Company owned 1,022 properties and had 182 positions in real estate-related securities and loans. The real estate portfolio consisted of 182 multifamily properties with 56,890 multifamily units, 764 industrial properties with 126.4 million square feet, 50 hotel properties with 9,041 rooms, and 5 retail properties with 0.8 million square feet. The Company also owned 21 properties that it classified as “Other”. During the three months ended September 30, 2019, the Company acquired interests in 371 real estate investments, which were comprised of 336 industrial, 10 multifamily, 3 hotel, one retail property, and 21 other properties for a total purchase price of approximately $6.87 billion.
About COPT
COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing what it believes are growing, durable, priority missions (“Defense/IT Locations”). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (“Regional Office Properties”). As of September 30, 2019, the Company derived 88% of its core portfolio annualized revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including 13 buildings owned through unconsolidated joint ventures, COPT’s core portfolio of 167 office and data center shell properties encompassed 18.8 million square feet and was 94.5% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts.
Sources: Corporate Office Properties Trust, SEC, Blue Vault
