Barry Sternlicht’s Starwood Capital Group is making a big industrial play, snapping up a last-mile warehouse portfolio for more than half a billion dollars.
Starwood purchased the 38-unit portfolio from Goldman Sachs and Dalfen Industrial for $685 million, Bloomberg reported. Dalfen will continue to lead operations across the properties.
The properties are spread across the country, touching upon the robust Sun Belt region and major cities in or near that area, including Atlanta, Austin, Dallas and Nashville. The portfolio is 89 percent leased, according to Dalfen chief executive officer Sean Dalfen, counting Wilson Sporting Goods, Amazon, Walgreens and Kroger among its tenants.
Starwood declined to comment to Bloomberg on the transaction. Eastdil Secured represented the sellers in the deal.
Last-mile warehouses are popular as e-commerce continues to boom and tenants try to get as close to consumers as possible and limit shipping times.
Sternlicht is no stranger to major deals in the industrial market. His firm teamed with Onyx Equities to acquire a 10-property portfolio of light industrial assets near John F. Kennedy International Airport in Inwood, New York, for $146 million in 2023. That deal is believed to mark the record for the most expensive industrial portfolio sale in Long Island history.
Companies that utilize industrial space are increasingly opting to buy properties rather than rent them, according to a recent report from CBRE. Last year, sales to such buyers rose 32 percent, while the average sales prices also rose by 5 percent to $152.42 per square foot.
Elsewhere, Starwood is seeking to modify a $577.3 million CMBS loan backed by 65 hotels across 21 states. The loan, which dates back to 2017, hit special servicing last month after the 6,300-key portfolio’s cash flow came under pressure.
Starwood has a term sheet in place for a loan modification that could close next month, as well as a plan to offload properties in the portfolio.— Holden Walter-Warner
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Commercial
New York
Starwood, Onyx pay $146M for LI industrial portfolio
Commercial
National
Starwood seeks to modify $577M CMBS loan tied to hotels