Centerbridge Pays $750M for Stake in $3B Platform
The deal will help expand Merritt Properties' shallow-bay industrial presence.
Centerbridge Partners paid $750 million for a stake in Merritt Properties. Almanac, the private real estate investment arm of Neuberger, sold the share. The capital infusion bolsters Merritt’s shallow-bay industrial development and acquisition capabilities in Maryland, Virginia, North Carolina and Florida, including new market expansions.
Almanac, formerly Rothschild Realty Managers, has partnered with Merritt since 1997. First reports of Centerbridge’s interest in buying into Merritt emerged in May, with the Financial Times reporting that Almanac would sell its minority ownership stake, representing roughly one-third of the company, in a deal valuing Merritt at $3 billion.
The new investment brings with it a slight shake-up at the firm, with Robb Merritt stepping in as CEO, while Scott Dorsey, who previously served as CEO, will transition to executive chairman. Bobby Lanigan will move forward as president.
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Merritt has a portfolio of more than 21 million square feet of office, flex, warehouse, industrial and build-to-suit properties. Some of its latest moves include the April acquisition of a 46,000-square-foot warehouse in Jacksonville, Fla., as well as the start of construction last February on the final building at an industrial park in Knightdale, N.C.
Centerbridge considers shallow-bay industrial to be a high-conviction sector, according to a company statement. The deal follows other recent moves by major investors. London-based Bridgepoint announced its entry in the U.S. market through the $1.4 billion acquisition of Kayne Anderson, a company with exposure to light industrial, among other asset types. This transaction is slated to close by the end of 2026.
Jefferies Private Capital Advisory, CBRE, alongside Miles & Stockbridge P.C. and Kramon & Graham, P.A., served as financial, real estate and legal advisors, respectively, for Merritt.
Centerbridge secured legal counsel from Simpson Thacher & Bartlett LLP, while Seyfarth Shaw LLP represented Almanac.
CRE investment up, industrial at the forefront
Commercial real estate investment continues its momentum following a first quarter that saw a 19 percent year-over-year increase to $117 billion across the U.S., according to a CBRE report. Notably, industrial was the top sector with a sales volume of $29.6 billion year-to-date through March, marking a 23 percent annual increase.
One of the biggest first-quarter deals closed in January, when Ares and Makarora completed the $2.1 billion acquisition of Plymouth Industrial REIT. A month later, Brookfield reached an agreement to buy Peakstone Realty Trust for $1.2 billion.
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