Ares Buys New Jersey Industrial Complex by I-80 for $139M

Ares CEO Michael Arougheti (Getty)

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 player in the space made a major acquisition in New Jersey.

Where exactly, it won’t 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 SEC filings. Interstate 80 runs across the entire northern half of the state.

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

Neither the exact location of I-80 Logistics Park nor the seller’s identity was disclosed. Ares Management declined to comment or reveal the location of the facility. It is obligated to share the location with the SEC, however.

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

Its operating portfolio features 232 buildings totaling 47 million square feet with an occupancy rate of 98 percent. It categorizes its other eight buildings as a “value-add” portfolio of nearly 2 million square feet.

Amazon.com Services LLC is its biggest client. Amazon recently ended its warehouse space binge, saying it overspent by billions of dollars.

In New Jersey, Ares Industrial’s portfolio has 16 buildings with an occupancy rate of 98 percent, according to SEC filings. (Its website lists 10 New Jersey properties.) A little over 10 percent of its operating properties’ rent comes from the state, just behind what it gets from its No. 1 market, Southern California.

Heron Industrial Center, where Kroger is the major tenant, was the last industrial property bought in New Jersey, in July 2021.

Industrial vacancy fell to a 27-year low earlier this year, according to a Savills report. The tightest major markets were Southern California and Northern New Jersey.

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