Dalfen Industrial, based in Dallas, and Goldman Sachs Alternatives, based in New York, have expanded their footprint in the logistics sector with the acquisition of a sprawling 21-building portfolio of infill logistics properties for nearly $300 million. This strategic move echoes their collaboration, which has been flourishing since 2020, focusing extensively on last-mile industrial properties and distribution centers.
The properties, which span regions including Dallas, Las Vegas, Cincinnati, and Pennsylvania, were acquired from Blackstone Inc. for $293 million, as reported by Bloomberg. This newly acquired portfolio encompasses approximately 2.1 million square feet of space, of which about 92% is presently leased to 68 tenants. Notable names filling those spaces include e-commerce giant Amazon, energy drink producer Red Bull, and packaging specialist Packaging Corporation of America.
Mike Cohen, the head of acquisitions at Dalfen Industrial, praised the success of what was described as a multi-market transaction, stating, "Our success in executing on a multi-market transaction is attributable to our regional structure and deep market knowledge." Cohen emphasized the advantages of their local presence, which he believes is key to achieving strong operating performance and meaningful value creation across their portfolio.
Sean Dalfen, President and CEO of Dalfen Industrial, expressed enthusiasm about the addition of what he called "exceptional assets" within strong submarkets characterized by significant barriers to entry. He stated, "Dalfen Industrial is excited about adding exceptional assets in strong submarkets with substantial barriers to entry. The portfolio features a diversified rent roll across modern, well-located buildings in markets we know intimately. Acquired at well below replacement cost, we see significant potential to improve value through strategic improvements and capturing upside as below-market leases roll over."
This acquisition marks another significant chapter for the partnership between Dalfen Industrial and Goldman Sachs, ramping up their combined portfolio to 94 buildings totaling 19 million square feet across major U.S. markets. It clearly establishes their competitive standing as market leaders within the industrial real estate segment.
Reflecting on the investment strategy behind the acquisition, Chance Monroe, managing director at Goldman Sachs Alternatives, noted, "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’re excited to continue to grow exposure to logistics assets in these markets."
Dalfen Industrial has carved out a niche for itself by specializing in strategically located infill warehouses and distribution centers, boasting a portfolio surpassing 50 million square feet. On the other hand, Goldman Sachs has made substantial investments exceeding $500 billion across various alternative assets categories, including private equity, real estate, infrastructure, and more.
Overall, this latest acquisition not only consolidates their existing partnership but also positions them well to capitalize on the surging demand for logistics and industrial properties as globalization and the digital economy continue to evolve and reshape the marketplace.
The logistics sector is seeing unprecedented growth due to factors like the continuous rise of e-commerce and supply chain adjustments post-pandemic. With companies focusing more on agility and efficient fulfillment strategies, partnerships like the one between Dalfen Industrial and Goldman Sachs are likely to thrive, setting the stage for greater innovation and investment opportunities.
Firmly rooted within the ever-changing dynamics of today's market, Dalfen Industrial and Goldman Sachs Alternatives are perfectly poised to leverage their expertise and strategies for long-term success. Through their latest acquisition, they are not just accumulating physical assets but also reinforcing their strategy to meet the burgeoning demand for distribution channels.