Goldman Sachs Merchant BankingDivision is buying a stake in a 46-asset last mile industrialportfolio owned by Dalfen Industrial. The portfolio of over 6.3million square feet caters to e-commerce-oriented tenants and islocated in such metro areas as Atlanta, Dallas, Chicago, Orlando,Phoenix, Raleigh, Houston, Tampa, Baltimore, Minneapolis,Cincinnati, Columbus, Reno and Jacksonville. With 94% occupancy andan average property size of 126,000 square feet, the properties areleased to tenants such as Amazon, FritoLay, Brinks, CentralGarden & Pet,Pods, and Sherwin Williams.

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The properties are valuedat $500 million, according toa source cited by Bloomberg

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E-commerce has been drivingindustrial property fundamentals for years but the pandemic hasaccelerated that trend. In May alone, e-commerce sales jumped92.7%. The expenditures for just April and May exceeded $53 billionin the US. Dalfen points to industry research that indicatesestimates that 400 million square feet or more of total additionalUS logistics real estate demand will be created in the next two tothree years as a result of this shift. 

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Another stat provided byJLL projects thatdemand for industrial real estate will grow to 1billion square feet within five years, because of acceleratedgrowth in e-commerce due to the Covid-19 pandemic and the ensuingshelter-in-place policies. E-commerce sales could hit $1.5 trillionby 2025, according to JLL, increasing demand for warehousefulfillment space and other industrial real estate to an additional1 billion square feet.

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"With the exponential growth ofe-commerce, especially in the wake of COVID-19, these last mileproperties are more important than ever," said Sean Dalfen,president and CIO.

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