By Dina Katgara
Starwood Capital Group bought a warehouse portfolio for about $685 million, signaling increased demand for distribution centers closer to consumers.
Starwood bought the 38 warehouses from Goldman Sachs Group Inc. and Dalfen Industrial, according to a statement. Dalfen will continue to operate the portfolio.
The properties are located in major markets such as Dallas, Atlanta, Nashville and Austin. The warehouses are 89% leased to tenants including Wilson Sporting Goods, Amazon.com Inc., Walgreens Boots Alliance Inc. and Kroger Co., according to Sean Dalfen, chief executive officer of Dalfen.
“We look forward to collaborating with Starwood to create additional value in this exceptional portfolio, strategically located in key metro markets,” Sean Dalfen said in the statement.
A Starwood spokesperson declined to comment.
Investors have been drawn to warehouses in part because of the boom in e-commerce, which brokerage Jones Lang LaSalle Inc. has said is expected to continue growing at nearly 9% annually. Last-mile properties, such as the ones in the Starwood deal, have been in demand because their proximity to key metro areas helps suppliers get products to consumers more quickly.
While a flood of new industrial properties has hit the market in recent years, the industry is “poised for continued growth” as more companies focus on nearshoring strategies to improve their supply chain, according to JLL.
Eastdil Secured represented Goldman and Dalfen on the transaction.