Goldman Sachs, Dalfen Pay $293M for Blackstone Industrial Portfolio
The last-mile properties total about 2.1 million square feet.
Goldman Sachs Alternatives and Dalfen Industrial are expanding their nearly five-year-old partnership. In an off-market transaction, the joint venture has acquired a 21-building, 2.1 million-square-foot last-mile logistics portfolio from Blackstone for $293 million.
The partnership first teamed up on industrial transactions in July 2020, with the purchase of 46 last-mile industrial facilities valued at nearly $500 million. With this latest acquisition, Dallas-based Dalfen and Goldman Sachs now own 94 buildings totaling 19 million square feet in major U.S. markets.
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The Blackstone portfolio adds assets in Dallas, Philadelphia, Pennsylvania’s Lehigh Valley, Cincinnati and Las Vegas. The buildings range from about 34,000 square feet to 260,000 square feet, with an average of about 125,000 square feet, and their vintage varies from 1995 to 2023 with an average of 2003.
The portfolio was 92 percent leased at closing to 68 tenants including Amazon, Red Bull and Packaging Corp. of America. Sean Dalfen, president & CEO of Dalfen Industrial, said in prepared remarks the collection was acquired at well below replacement cost.
Blackstone sold another last-mile industrial portfolio in recent months when Longpoint Partners acquired a 26-building, 1.4 million-square-foot portfolio of infill, last-mile facilities in South Florida for $331.3 million. The collection had properties in Miami-Date, Broward and Palm Beach counties and an average occupancy rate of 97 percent.
Last-mile focus
Dalfen, one of the largest privately held industrial real estate firms in the U.S., specializes in strategically located infill warehouses and distribution centers with a portfolio of more than 50 million square feet.
The partnership between Dalfen and Goldman Sachs has centered on last-mile properties. In December 2020, the joint venture purchased 10 last-mile properties located in Denver; West Palm Beach, Fla.; Charlotte, N.C.; San Antonio and Fort Worth, Texas, ending its first year with more than 8 million square feet of infill industrial acquisitions.
Sean Dalfen told Commercial Property Executive the firm will continue its investment strategy with a focus on last-mile properties in the nation’s top markets that are close to consumers and strategically located to meet the growing e-commerce and logistics demand.
“Last-mile properties are important as an investment because if you aren’t close to the customer, you simply won’t profit,” Dalfen said.
Asked about strategy, he mentioned, “We build our portfolio one asset at a time using a proprietary data-based last-mile scoring methodology and boots-on-the-ground experts to determine opportunities with optimal location and value.”
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