Ares buys New Jersey industrial complex near I-80 for $139 million

Ares CEO Michael Arougheti (Getty)

At a time when industrial space is as hard to come by as it has been in ages, a big space player has made a major acquisition in New Jersey.

Where exactly, he will not say.

Ares Industrial Real Estate Income Trust, a subsidiary of Los Angeles-based Ares Management, paid $138.5 million for a 557,000 square foot industrial complex it calls I-80 Logistics Park, according to filings. by the SEC.

The acquisition was completed on June 29 by the unlisted Maryland-based trust, which invests in real estate assets consisting largely of distribution warehouses and other industrial buildings leased to corporate clients. It was previously known as Black Creek Industrial REIT IV.

Neither the exact location of the I-80 logistics park nor the identity of the seller has been disclosed. Ares Management declined to comment or reveal the location of the installation. He is, however, obligated to share the location with the SEC.

Ares Industrial owns and manages an industrial portfolio in 29 US markets. In the first six months of 2022, it acquired 47 buildings for $1.7 billion.

Its operating portfolio includes 232 properties totaling 47 million square feet with an occupancy rate of 98%. It classifies its other eight buildings as a “value-added” portfolio of nearly 2 million square feet. Services LLC is its biggest customer. Amazon recently ended its warehouse space spree, saying it had exceeded billions of dollars.

In New Jersey, Ares Industrial’s portfolio has 16 buildings with an occupancy rate of 98%, according to filings with the SEC. (His website lists 10 properties in New Jersey.) Slightly more than 10% of the rent for its operating properties comes from the state, second only to what it gets from its No. 1 market, Southern California.

Heron Industrial Centerof which Kroger is the main tenant, was the last industrial property purchased in New Jersey, in July 2021.

Industrial vacancy fell to its lowest level in 27 years earlier this year, according to a Savills report. The tightest major markets were Southern California and Northern New Jersey.

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