CHICAGO-Two real estate powerhouses are angling for control of a massive industrial portfolio hoping to capitalize on an expected economic recovery. So says a recent article in the Wall Street Journal.
Blackstone Group LP for more than two years has been collecting pieces of junior debt on the 23 million square-foot portfolio, known as CalWest, aiming to take over after an anticipated June default. Meanwhile, a Morgan Stanley property fund which holds a piece of junior debt, also is jockeying for control, according to people familiar with the matter.
The CalWest portfolio has 95 properties, which include warehouses, distribution centers and other industrial buildings in California, Arizona, Texas and other states.
As GlobeSt.com previously reported, the portfolio was acquired by Chicago-based real estate investor Walton Street Capital LLC in 2007 from the California Public Employees Retirement System and a Deutsche Bank asset-management arm, Rreef for about $2.75 billion. According to the WSJ article, it is now worth roughly $1.2 billion.
To read the full article, click here.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
