Blackstone Sells New Jersey Industrial Portfolio for $208M
The collection includes warehouses in infill locations.
A joint venture between Bain Capital and Oliver Street Capital has purchased a 784,000-square-foot industrial portfolio across Northern New Jersey for $208 million. Blackstone sold the assets, according to Traded.
The collection, which was 88 percent leased at closing, included 11 Class B warehouses with an average suite size of 23,000 square feet. Properties are spread throughout infill submarkets.
As tenant demand switches to shallow bay industrial properties, Bain and Oliver Street will continue investing in such assets, according to prepared remarks by Bain Capital Head of Real Estate Ryan Cotton. Hence, this acqusition includes facilities located in a supply-constrained industrial market that serves metro New York City.
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The duo joined forces in 2019 and have since purchased 62 assets encompassing more than 6 million square feet for an industrial investment volume upward of $1.5 billion across 45 separate transactions.
Bain and Oliver Street expanded to Northern New Jersey two years ago, and Blackstone’s portfolio acquisition marked their fifth investment in the region. With its latest purchase, the venture now owns 15 properties in the market, Oliver Street Capital Managing Principal Jon Hyde said in a prepared statement.
Its previous transaction in the market closed late last year when the two companies paid $33.3 million for an 8.8-acre industrial outdoor storage asset in South Plainfield, N.J. Trans American sold the property in a sale lease-back deal.
Industrial demand ramps up in Northern New Jersey
Amid the tariff turmoil, New Jersey kicked off 2025 with a modest 7.3 million square feet of industrial leasing activity during the first quarter, according to a JLL report. The last three months of 2024 saw the figure well above 12 million.
Noteworthy was Northern New Jersey, where 3.5 million square feet of industrial leases closed during the first three months, the same source shows. The region surpassed Central New Jersey for the first time in more than a year.
Industrial vacancy across The Garden State stood at 6.7 percent in March, JLL shows. The index is expected to rise, as just 20.2 percent of the 12.3 million square feet of industrial space underway was pre-leased in March.
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