Real estate giant Blackstone purchased PS Business Parks, including two dozen Signal Hill properties, for $7.6 billion. Thursday, Aug. 18, 2022. Photo by Brandon Richardson.

Real estate giant Blackstone Real Estate purchased PS Business Parks, which includes two dozen properties in Signal Hill, for $7.6 billion, the companies announced earlier this year.

The two firms entered into a definitive agreement in late April in which Blackstone would acquire all outstanding shares of common PSB stock for $187.50 per share in an all-cash transaction. The sale was approved by the PSB board and stockholders and closed on July 20.

“I am extremely proud of everything we have accomplished at PS Business Parks,” President and CEO Stephen Wilson said in a statement. “This transaction is an exceptional outcome for our stockholders and a testament to the incredible company and portfolio of high-quality assets our team has built, acquired and enhanced over the years.”

At the end of last year, the firm reported its assets under management had grown to nearly $881 billion—up 42% year-over-year, according to PitchBook. The company had originally projected surpassing $1 trillion in assets in 2026 but now say that goal will be reached before the end of this year.

In January, the firm’s real estate arm agreed to buy an apartment portfolio of more than 12,600 units from Resource REIT for about $3.6 billion. Last year, the firm spent nearly $10 billion purchasing 18,000 rental units from Bluerock Residential and Home Partners of America.

Blackstone Real Estate also recently spent $505 million on seven hotels, including two Sunnyvale business hotels, in a deal with Hersha Hospitality Trust, The Real Deal reports.

The firm’s PSB deal includes 24 properties in Signal Hill that account for about $175 million of the total purchase price and nearly 414,000 square feet worth of the total 27 million square feet.

“We are excited to add [PSB’s] business park, office and industrial assets to our portfolio and look forward to leveraging our expertise to provide the best possible service and experience for PSB’s customers,” David Levine, co-head of Americas acquisitions for Blackstone Real Estate said in a statement.

Brian Russell, vice president of Kinnery’s Brokerage House in Long Beach, said the purchase will likely be a mixed bag for current and prospective tenants of the properties. On the plus side, the sale will likely be followed by capital improvements by Blackstone.

The continued consolidation of properties under Blackstone, however, could result in higher lease rates as tenants have fewer landlords to choose from, Russell said.

“They are on the march with a seemingly endless acquisition budget,” Russell said. “Lease rates will stay strong and may indeed continue to rise. But will we have stable ownership in return? Yes, we will.”

Brandon Richardson is a reporter and photojournalist for the Long Beach Business Journal.