Goldman Sachs Alternatives and Dalfen Industrial Expand Partnership with Acquisition of 21-Building Logistics Portfolio

Rhea-AI Summary

Goldman Sachs Alternatives and Dalfen Industrial have expanded their partnership through the acquisition of a 21-building logistics portfolio spanning 2.1 million square feet. The off-market deal includes strategic assets across Dallas, Las Vegas, Cincinnati, and Pennsylvania. The portfolio, which is 92% leased to 68 tenants including Amazon, Red Bull, and Packaging of America, was acquired below replacement cost.

The partnership between Dalfen Industrial and Goldman Sachs now encompasses 94 buildings and 19 million square feet in major U.S. markets. The acquisition aligns with their strategy to invest in assets benefiting from e-commerce growth, onshoring, and supply chain disaggregation in locations with favorable consumer and labor market dynamics.

Positive

• Portfolio acquired below replacement cost, indicating potential value appreciation
• High occupancy rate of 92% with diverse tenant base of 68 companies
• Strategic locations in key markets with barriers to entry
• Potential revenue growth from below-market lease renewals
• Partnership expansion to 94 buildings and 19 million square feet demonstrates strong market position

Negative

• Below-market leases indicate current suboptimal rental income

DALLAS, Jan. 30, 2025 /PRNewswire/ -- Goldman Sachs Alternatives and Dalfen Industrial, a leader in last-mile industrial real estate, have announced the acquisition of a 21-building, 2.1-million-square-foot portfolio of infill logistics properties. The deal was acquired off-market and adds strategic assets across Dallas, Las Vegas, Cincinnati, and Pennsylvania to their growing portfolio.

The newly acquired portfolio is 92% leased to 68 tenants, including prominent names such as Amazon, Red Bull, and Packaging Corporation of America.

"Our success in executing on a multi-market transaction is attributable to our regional structure and deep market knowledge," said Mike Cohen, Head of Acquisitions at Dalfen Industrial. "Our local presence helps our teams deliver strong operating performance resulting in meaningful portfolio value creation."

Sean Dalfen, President & CEO of Dalfen Industrial, emphasized the value-driven nature of the transaction:

"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 enhance value through strategic improvements and capturing upside as below-market leases roll over."

With this acquisition, the partnership between Dalfen Industrial and Goldman Sachs now totals 94 buildings and 19 million square feet in major U.S. markets, further solidifying their position as a market leader in industrial real estate.

"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," said Chance Monroe, Managing Director in Real Estate at Goldman Sachs Alternatives.

About Dalfen Industrial

Headquartered in Dallas, Texas, Dalfen Industrial LLC is a premier name in last-mile industrial real estate and one of the largest privately held industrial real estate firms in the United States. The company specializes in strategically located infill warehouses and distribution centers, with a portfolio exceeding 50 million square feet.

About Real Estate at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in alternative assets and more than 35 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world's leading institutions, financial advisors and individuals. Goldman Sachs has $3.1 trillion in assets under supervision globally as of September 30, 2024.

Established in 1991, Real Estate at Goldman Sachs Alternatives is one of the leading investors in real estate with over $60 billion in capital invested since 2012 across the spectrum of investment strategies from core to opportunistic and credit. The global team invests across all sectors with deep expertise across the capital structure, in assets ranging from single properties to large portfolios, through senior mortgages, mezzanine debt and equity. 

Media Contact: press@dalfen.com

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SOURCE Dalfen Industrial

FAQ

What is the size and scope of Goldman Sachs (GS) latest logistics portfolio acquisition?

The acquisition includes 21 buildings totaling 2.1 million square feet across Dallas, Las Vegas, Cincinnati, and Pennsylvania, with 92% occupancy across 68 tenants.

How many properties does the Goldman Sachs-Dalfen partnership now own after this acquisition?

Following this acquisition, the partnership now owns 94 buildings totaling 19 million square feet in major U.S. markets.

What is the occupancy rate and tenant mix of GS's newly acquired logistics portfolio?

The portfolio is 92% leased to 68 tenants, including major companies like Amazon, Red Bull, and Packaging of America.

What is the strategic rationale behind Goldman Sachs (GS) latest logistics acquisition?

The acquisition aligns with GS's strategy to invest in assets benefiting from e-commerce growth, onshoring, and supply chain disaggregation in locations with favorable market dynamics.

How does the acquisition price compare to replacement cost for GS's new portfolio?

According to the announcement, the portfolio was acquired well below replacement cost, suggesting potential value appreciation opportunities.