Goldman Sachs Expands Logistics Portfolio with $300 Million Acquisition

Goldman Sachs Group Inc.'s alternative investment branch, in collaboration with Dallas-based real estate firm Dalfen Industrial LLC, has acquired a significant portfolio of logistics buildings from Blackstone Inc. in a deal valued at approximately $293 million. The acquisition consists of 21 warehouse properties located in Las Vegas, Dallas, Cincinnati, and Pennsylvania, accumulating to approximately 2.1 million square feet. These properties are seen as vital to the e-commerce sector, facilitating last-mile deliveries that meet the increasing demands of online shoppers. At present, 92% of this newly acquired space is leased out to prominent tenants such as Amazon and Red Bull. This acquisition is part of a broader trend, wherein warehouses proximal to urban centers are highly sought after despite construction challenges due to logistical nuisances like truck traffic and pollution. Dalfen Industrial’s CEO, Sean Dalfen, views this investment as one with guaranteed future appreciation due to the strategic importance of such facilities in supply chain infrastructure. Concurrently, amid shifting interest rates affecting the commercial property market, logistics building investments remain resilient with stable demand and increasing rent growth, according to Cushman & Wakefield. The collaborative venture now possesses 94 logistics buildings in contrast to Dalfen's expansive North American portfolio characterized by over 50 million square feet worth approximately $5 billion.