Goldman venture buys US$300 million of warehouses from Blackstone
The bank partners Dallas-based real estate company Dalfen Industrial to acquire 21 buildings across the US
GOLDMAN Sachs Group’s alternative investment arm is pushing deeper into warehouses with the purchase of a nearly US$300 million portfolio of logistics buildings from Blackstone.
The bank partnered Dallas-based real estate company Dalfen Industrial to acquire 21 buildings across the US states of Las Vegas, Dallas, Cincinnati and parts of Pennsylvania. The properties total roughly 2.1 million square feet and are 92 per cent leased to 68 tenants, including Amazon and Red Bull, according to a statement on Wednesday (Jan 29).
Warehouses close to population centres have become increasingly important as US shoppers purchase more and more items online and expect their products to be delivered promptly. At the same time, it has become trickier to build these “last-mile” facilities because local residents often complain about truck traffic and pollution.
The buildings in the deal announced on Wednesday were purchased for US$293 million, according to Sean Dalfen, chief executive officer of Dalfen Industrial. The company’s joint venture with Goldman Sachs now owns 94 logistics buildings totalling roughly 19 million square feet.
“Over time, those assets will go up substantially in value because of how necessary they are in our infrastructure,” Dalfen said. “Last-mile industrial buildings are a finite resource because communities simply don’t want them.”
While the commercial-property industry has been battered by higher interest rates, logistics facilities have remained resilient, based on a recent report by Cushman & Wakefield. While the overall vacancy rate ticked up in the fourth quarter, many markets have seen strong rent growth over the past five years, the real estate services firm said.
Selling now worked out well for Blackstone. “Having executed our business plan at these properties, we are pleased to have reached this agreement and deliver a terrific outcome for our investors,” a Blackstone spokesperson said.
Dalfen Industrial has more than 50 million square feet of properties across the US and Canada worth about US$5 billion. Earlier in January, the company said that it acquired a pair of warehouses in Orlando and Tampa.
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