Bain Capital is expanding its reach into New Jersey’s warehouse sector with a $200 million deal for a portfolio of nearly a dozen properties.
The Boston-based private equity firm teamed up with Oliver Street Capital to purchase 11 light industrial buildings for $208 million, the companies told The Real Deal. They did not disclose the seller, but a source familiar with the deal said it was the Blackstone Group.
This marks the fifth acquisition in northern New Jersey for Bain and Oliver Street since their joint venture started buying in the region in late 2015.
The properties are all Class B warehouses totaling 784,000 square feet, and the portfolio is 88 percent leased to a mix of local and national tenants. The largest building is a roughly 125,000-square-foot warehouse at 8 Vreeland Avenue in Totowa.
Ryan Cotton, head of Bain’s real estate team, said the deal was “tailor-made” for their strategy of focusing on smaller-format facilities, which he said are seeing an increase in demand.
“This is a compelling opportunity to meaningfully scale and diversify our infill industrial portfolio in the Northern New Jersey market, one of the country’s most supply-constrained and strategically important warehouse markets serving the unmatched consumption base of the New York City [area],” he said.
Bain launched its real estate business in 2017 when it acquired Harvard Management Company’s real estate team. It formed a JV with Oliver Street in 2019 and since then they’ve purchased 62 properties totaling more than 6 million square feet. The JV has deployed more than $1.5 billion in New York, New Jersey, Boston and Washington, D.C.
Read more
Development
New York
Bain, Bungalow buy second Brooklyn film studio site
Commercial
New York
SKW Funding, Bain Capital in $1.3B JV for troubled debt