Blackstone is betting big on Texas logistics. For $718 million, the investment giant is acquiring a 95% stake in a 6 million-square-foot industrial portfolio developed by Crow Holdings.

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The 25 Class A warehouses are located in Dallas and Houston, two of the country’s busiest logistics markets. The buildings were completed in the past two years and are in high-demand, low-vacancy areas.

“This transaction is a testament to the strength of our development platform,” said Bob McClain, CEO of Crow Holdings Capital.

Crow and its partners will retain a 5% stake in the portfolio.

With warehouse construction starts down more than 80% since their 2022 peak, investors are circling modern, well-located facilities. Blackstone sees this deal as a chance to double down.

“Logistics remains a high-conviction investment theme for Blackstone,” said David Levine, Co-Head of Americas Acquisitions for the firm.

Blackstone manages more than 1.5 billion square feet of logistics space worldwide and has invested over $60 billion in the sector.

The deal is expected to close in the coming months.