Goldman Sachs and Dalfen Industrial Partner on 46-property last mile industrial portfolio

Dalfen Industrial is partner with Goldman Sachs Merchantto Banking Division on a 46-property last mile industrial portfolio. The portfolio of over 6.3 million square feet caters to e-commerce-oriented tenants and is proximate to major population centres and/or key logistics corridors. 

The portfolio provides distribution and fulfilment space in numerous major MSA’s such as: Atlanta, Dallas, Chicago, Orlando, Phoenix, Raleigh, Houston, Tampa, Baltimore, Minneapolis, Cincinnati, Columbus, Reno and Jacksonville. With 94% occupancy and an average property size of 126,000 square feet, this high occupancy portfolio is home to major tenants such as Amazon, Frito Lay, Brinks, Central Garden & Pet, Pods, and Sherwin Williams.

While the trend toward e-commerce has been on an upward trajectory for years, Covid-19 accelerated that rate tremendously. In May alone, e-commerce sales jumped 92.7 per cent. The expenditures for just April and May exceed $53 billion in the US. In order to handle rapid replenishment needs, delivery volume, and current customer expectation of timely delivery, companies need to be closer to their customers. Research indicates estimates that “400 MSF or more of total additional US logistics real estate demand will be created in the next two to three years” as a result of this shift. The portfolio is located in dynamic MSA’s with growing population bases supported by robust local economies and low tax environments.”

“With the exponential growth of e-commerce, especially in the wake of Covid-19, these last mile properties are more important than ever,” says Sean Dalfen, president and CIO. “The partnership with Goldman Sachs allows us to offer the distribution and fulfilment centre properties needed to meet that demand.”