A Goldman Sachs-backed industrial enterprise in partnership with Dallas-based Dalfen Industrial offered an almost half-million-square-foot New Jersey warehouse to the federal authorities.
DG Roxbury Property Proprietor L.P., a partnership that features a Goldman Sachs asset administration fund and Dalfen as a minority proprietor, transferred the 470,000-square-foot constructing 1879 Route 46 in Roxbury to the U.S. Division of Homeland Safety, in response to CoStar and property information. The ability will probably be operated by Immigration and Customs Enforcement, clearing the best way for a brand new immigration detention facility, the Dallas Morning Information reported.
Phrases of the sale weren’t disclosed. Dalfen stated in an announcement that the possession group offered the property “in lieu of the potential of eminent area” and that it’s going to don’t have any involvement within the constructing’s future use.
ICE confirmed the acquisition, describing the property as a facility that may meet its “common detention requirements.” The New York Instances reported the Roxbury web site may add roughly 1,500 beds to New Jersey’s immigration detention system, a big growth in a state that has confronted political and authorized battles over such services.
The deal follows a short swirl of conflicting studies about whether or not the sale would shut. It additionally lands amid heightened scrutiny of business landlords leasing to federal immigration authorities, in response to the Dallas Morning Information.
Dalfen acquired the property in December 2023 in an off-market deal, the agency stated on the time. The corporate is likely one of the nation’s largest privately held industrial actual property buyers, with tens of millions of sq. toes throughout main logistics markets. CEO Sean Dalfen relies in Dallas.
The transaction offers one other instance of the federal authorities’s rising reliance on privately owned industrial properties to develop detention capability, notably because the company seeks to ramp up enforcement tied to President Donald Trump’s mass deportation agenda.
Not each landlord is on board. California-based Majestic Realty not too long ago stated it will not promote or lease a warehouse in Hutchins, south of Dallas, to the federal authorities after inner ICE paperwork outlined plans to accommodate as much as 9,500 migrants there.
Goldman and Dalfen have been frequent companions within the industrial sector, in response to the publication. Earlier this 12 months, a Goldman fund teamed with Dalfen to accumulate a 21-building, almost $300 million portfolio spanning Las Vegas, Dallas, Cincinnati and components of Pennsylvania.
— Eric Weilbacher
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