A joint venture between Bain Capital‘s real estate arm and US real estate investor Oliver Street Capital (OSC) has acquired a $208m (€185m) industrial portfolio.
The partnership has acquired the 784,000sqft industrial portfolio primarily located in Northern New Jersey. The value-add portfolio is currently 88% leased to a mix of local and national tenants.
The transaction represents Bain Capital and OSC’s fifth in Northern New Jersey since expanding their joint venture there in late 2023.
Ryan Cotton, head of Bain Capital’s real estate team, said: “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 MSA.
“This portfolio is tailor-made for our thematic infill strategy, with the majority of properties concentrated in our highest conviction submarkets. As demand continues to shift toward smaller-format facilities, we continue to see significant opportunities to partner with OSC to invest in these infill industrial assets in high demand by a diverse tenant base.”
Jon Hyde, managing principal of OSC, said: “This transaction marks a watershed moment in our platform’s expansion into the Northern New Jersey market, raising our presence to 15 assets within two years. We continue to have high conviction in the Northern New Jersey industrial market.”
Jon O’Donnell, managing principal of OSC, said: “We’re building a truly unique multi-market portfolio of functional and irreplicable warehouses in highly infill locations, which is a testament to our relationships and the great local networks that help us source, lease, and manage the assets.”
Since the formation of the joint venture in 2019, Bain Capital and OSC have acquired 62 assets totaling over 6m sqft across more than 45 transactions. The partnership has deployed over $1.5bn in capital to date and continues to focus on expanding its portfolio in the New York/New Jersey region, Boston and Washington, DC.
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