Dalfen, Centerbridge Add to IOS Portfolio

August 14, 2024

The joint venture partners acquired two East Coast assets.

Aerial view of the property at 2 Gowin St. in Sayreville, N.J. — The property at 2 Gowin St. in Sayreville, N.J. *Image courtesy of Dalfen Industrial*

The joint venture between Dalfen Industrial and Centerbridge Partners is continuing to expand its industrial outdoor storage portfolio across the U.S. This time, the partnership acquired two East Coast properties in off-market transactions.

Dalfen and Centerbridge formed the joint venture in April 2023, targeting infill IOS sites in markets near ports, key logistics nodes and heavily populated MSAs. The newest purchases are in Capitol Heights, Md., and Sayreville, N.J., both high barrier to entry coastal markets, according to Dalfen.

The Capitol Heights property is a 3.9-acre storage yard located a half-mile from Martin Luther King Jr. Highway, 5.9 miles from Interstate 495 and 14 miles from Interstate 95. The site also provides access to Baltimore/Washington International Airport, Ronald Reagan Washington National Airport and Dulles National Airport. Nearby tenants include Amazon, Whole Foods, PODS, Guest Supply and Sysco. Newmark Managing Director Ben McCarty arranged the deal.

The second acquisition involved a 1.3-acre IOS asset. The Sayreville site is paved, lit and fenced and includes an 8,000-square-foot fleet service building. Located near Exit 10 in Edison, N.J., it is close to both Interstate 95 and the Garden State Parkway, while being 30 miles from New York City, the ports and Staten Island. Mark Silverman, first vice president with CBRE, sourced the transaction.

Earlier acquisitions

In May, the joint venture acquired five IOS sites on the West Coast. Two of the properties are in San Francisco’s East Bay, two are in metro Seattle and one is located in Southern California. At the time, a Dalfen executive told Commercial Property Executive that the gross capitalization across the five deals was about $26 million.

In September 2023, the partnership acquired another California asset, a 4.1-acre trailer storage yard in the Inland Empire submarket of Riverside. The location has direct access to Highway 91 and Interstate 215, as well as the Ports of Los Angeles and Long Beach.

At that time, the partners also announced the purchase of a 6.9-acre IOS facility in Old Bridge, N.J., about 40 miles south of Manhattan. The fully leased property has access to major highways including the Garden State Parkway and Route 9 as well as ports in New York and New Jersey.