The Meritex Company and funds managed by Vintage Strategies at Goldman Sachs Alternatives have completed a recapitalization of an 18-building infill industrial portfolio in the Atlanta market totaling 1,222,596 square feet.
A newly formed continuation vehicle acquired exposure to the portfolio, while Meritex will remain the controlling partner and serve as operating member and day-to-day manager. Meritex said the structure allows it to retain majority ownership and operating control while expanding its relationship with Goldman Sachs Alternatives.
The portfolio consists of multi-tenant shallow- and mid-bay industrial properties across Atlanta’s Northeast, North Central/Georgia-400 and Northwest submarkets. The assets are located in Kennesaw, Smyrna, Norcross, Lawrenceville and Alpharetta.
Meritex said the properties serve tenants across a range of industries and benefit from limited availability of developable land, sustained demand for distribution and light manufacturing space, major transportation links and a deep regional labor pool.
The joint venture expands Meritex’s institutional capital relationships and is intended to support future acquisitions, development opportunities and portfolio growth across the firm’s target markets. The transaction combines Goldman Sachs Alternatives’ institutional investment capabilities with Meritex’s vertically integrated operating platform and local market expertise.
Meritex focuses on acquiring, developing, owning and managing infill multi-tenant industrial properties. The 110-year-old company owns and manages approximately 15 million square feet across 127 industrial properties in nine major U.S. markets.
Vintage Strategies at Goldman Sachs Alternatives was established in 1998 and has invested more than $95 billion of capital since inception. Goldman Sachs Alternatives manages more than $706 billion in assets across private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability strategies.
KEY QUOTES:
“This transaction reflects the quality of the portfolio we have assembled and the strength of our operating platform. We are pleased to expand our relationship with Goldman Sachs Alternatives while maintaining majority ownership and operating control of assets we have invested in over many years. The venture positions us to continue creating value through active asset management, leasing execution, and disciplined capital deployment.”
Mark Spotts, Chief Financial Officer At Meritex
“Atlanta remains one of the nation’s most attractive long-term industrial markets. Demand continues to be supported by population growth, business formation, transportation connectivity, and the region’s role as a key logistics hub for the Southeast. Our portfolio is concentrated in highly constrained infill locations where replacement opportunities are limited, positioning us to benefit from continued tenant demand over the long term. This partnership allows us to continue executing our long-term investment strategy while preserving the operational discipline and local market focus that have been central to our success.”
Tom Hotovec, Chief Executive Officer At Meritex