Goldman Dalfen Venture Sells New Jersey Warehouse to ICE

A Goldman Sachs-backed industrial venture in partnership with Dallas-based Dalfen Industrial sold a nearly half-million-square-foot New Jersey warehouse to the federal government.

DG Roxbury Property Owner L.P., a partnership that includes a Goldman Sachs asset management fund and Dalfen as a minority owner, transferred the 470,000-square-foot building 1879 Route 46 in Roxbury to the U.S. Department of Homeland Security, according to CoStar and property records. The facility will be operated by Immigration and Customs Enforcement, clearing the way for a new immigration detention facility, the Dallas Morning News reported.

Terms of the sale were not disclosed. Dalfen said in a statement that the ownership group sold the property “in lieu of the potential of eminent domain” and that it will have no involvement in the building’s future use.

ICE confirmed the acquisition, describing the property as a facility that will meet its “regular detention standards.” The New York Times reported the Roxbury site could add roughly 1,500 beds to New Jersey’s immigration detention system, a significant expansion in a state that has faced political and legal battles over such facilities.

The deal follows a brief swirl of conflicting reports about whether the sale would close. It also lands amid heightened scrutiny of industrial landlords leasing to federal immigration authorities, according to the Dallas Morning News.

Dalfen acquired the property in December 2023 in an off-market deal, the firm said at the time. The company is one of the country’s largest privately held industrial real estate investors, with millions of square feet across major logistics markets. CEO Sean Dalfen is based in Dallas.

The transaction provides another example of the federal government’s growing reliance on privately owned industrial properties to expand detention capacity, particularly as the agency seeks to ramp up enforcement tied to President Donald Trump’s mass deportation agenda.

Not every landlord is on board. California-based Majestic Realty recently said it would not sell or lease a warehouse in Hutchins, south of Dallas, to the federal government after internal ICE documents outlined plans to house up to 9,500 migrants there.

Goldman and Dalfen have been frequent partners in the industrial sector, according to the publication. Earlier this year, a Goldman fund teamed with Dalfen to acquire a 21-building, nearly $300 million portfolio spanning Las Vegas, Dallas, Cincinnati and parts of Pennsylvania.

— Eric Weilbacher