Blackstone Said in Talks to Seize CalWest Properties

Blackstone Group LP is in talks to take ownership of about $2 billion of industrial properties from Walton Street Capital LLC as debt on the assets matures, two people briefed on the discussions said.

Blackstone, based in New York, owns about $1 billion of junior debt on the real estate, putting it in a position to wrest control if Walton Street defaults, said the people, who asked not to be identified because the talks are private. That’s likely because the properties, known as the CalWest portfolio, are now worth less than the $2.45 billion of loans, which come due on June 8, the people said.