Goldman Sachs Alternatives and Dalfen Industrial Enhance Logistics Portfolio with Major Acquisition
In a significant move within the industrial real estate sector, Goldman Sachs Alternatives and Dalfen Industrial have joined forces to acquire a substantial portfolio that spans 21 buildings totaling 2.1 million square feet. This acquisition targets infill logistics properties that are crucial for last-mile delivery, a rapidly growing segment propelled by the e-commerce boom.
The deal, executed off-market, strategically enhances both companies' presence in key markets, adding properties across major cities including Dallas, Las Vegas, Cincinnati, and Pennsylvania. Notably, the newly acquired assets boast a strong occupancy rate, with 92% currently leased to 68 tenants, featuring high-profile names like Amazon, Red Bull, and Packaging Corporation of America. This robust tenant mix highlights the appeal and strategic value of these properties in the evolving logistics landscape.
Mike Cohen, Head of Acquisitions at Dalfen Industrial, noted, "Our success in executing on a multi-market transaction is attributable to our regional structure and deep market knowledge." This insight into local markets not only assists in ensuring strong operational performance but also contributes to significant value creation for their portfolio.
Sean Dalfen, the President and CEO of Dalfen Industrial, expressed enthusiasm about the addition of these exceptional assets, emphasizing their strategic location in submarkets with high barriers to entry. He mentioned that these acquisitions were completed at a cost significantly below replacement value, revealing potential for enhanced profitability through targeted improvements and market adjustments as legacy leases reach expiration.
This acquisition marks a pivotal expansion of the partnership between Goldman Sachs and Dalfen Industrial, now amassing a total of 94 buildings encompassing 19 million square feet across major U.S. markets. As leading investors in industrial real estate, both firms are positioning themselves strategically in a market characterized by rapid shifts towards e-commerce, onshoring, and supply chain adaptability.
Chance Monroe, Managing Director at Goldman Sachs Alternatives, highlighted the essential trends driving this investment: "This acquisition fits our strategy to invest in assets that benefit from thematic trends such as the growth of e-commerce, onshoring, and supply chain disaggregation in locations with favorable consumer and labor market dynamics. We are excited to continue to grow exposure to logistics assets in these markets."
Dalfen Industrial, headquartered in Dallas, Texas, is recognized as a preeminent player in last-mile industrial real estate, focusing on strategically located warehouses and distribution centers. They currently manage a portfolio surpassing 50 million square feet.
Goldman Sachs, with over $500 billion in alternative assets under management, leverages over 35 years of expertise to offer diverse investment solutions, including private equity, real estate, and sustainable investments. Its Real Estate segment is a considerable force, backing over $60 billion in investments across various strategies since 2012.
This merger of resources and expertise between Goldman Sachs and Dalfen Industrial positions both firms advantageously within the industrial real estate market, promising robust growth amid ever-evolving market demands. The partnership showcases a sophisticated approach to investment in logistics, hinting at further expansions in the near future as demand for efficient, last-mile logistics solutions continues to surge.
The deal, executed off-market, strategically enhances both companies' presence in key markets, adding properties across major cities including Dallas, Las Vegas, Cincinnati, and Pennsylvania. Notably, the newly acquired assets boast a strong occupancy rate, with 92% currently leased to 68 tenants, featuring high-profile names like Amazon, Red Bull, and Packaging Corporation of America. This robust tenant mix highlights the appeal and strategic value of these properties in the evolving logistics landscape.
Mike Cohen, Head of Acquisitions at Dalfen Industrial, noted, "Our success in executing on a multi-market transaction is attributable to our regional structure and deep market knowledge." This insight into local markets not only assists in ensuring strong operational performance but also contributes to significant value creation for their portfolio.
Sean Dalfen, the President and CEO of Dalfen Industrial, expressed enthusiasm about the addition of these exceptional assets, emphasizing their strategic location in submarkets with high barriers to entry. He mentioned that these acquisitions were completed at a cost significantly below replacement value, revealing potential for enhanced profitability through targeted improvements and market adjustments as legacy leases reach expiration.
This acquisition marks a pivotal expansion of the partnership between Goldman Sachs and Dalfen Industrial, now amassing a total of 94 buildings encompassing 19 million square feet across major U.S. markets. As leading investors in industrial real estate, both firms are positioning themselves strategically in a market characterized by rapid shifts towards e-commerce, onshoring, and supply chain adaptability.
Chance Monroe, Managing Director at Goldman Sachs Alternatives, highlighted the essential trends driving this investment: "This acquisition fits our strategy to invest in assets that benefit from thematic trends such as the growth of e-commerce, onshoring, and supply chain disaggregation in locations with favorable consumer and labor market dynamics. We are excited to continue to grow exposure to logistics assets in these markets."
Dalfen Industrial, headquartered in Dallas, Texas, is recognized as a preeminent player in last-mile industrial real estate, focusing on strategically located warehouses and distribution centers. They currently manage a portfolio surpassing 50 million square feet.
Goldman Sachs, with over $500 billion in alternative assets under management, leverages over 35 years of expertise to offer diverse investment solutions, including private equity, real estate, and sustainable investments. Its Real Estate segment is a considerable force, backing over $60 billion in investments across various strategies since 2012.
This merger of resources and expertise between Goldman Sachs and Dalfen Industrial positions both firms advantageously within the industrial real estate market, promising robust growth amid ever-evolving market demands. The partnership showcases a sophisticated approach to investment in logistics, hinting at further expansions in the near future as demand for efficient, last-mile logistics solutions continues to surge.
Topics Financial Services & Investing）
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