Joint Venture Expands into Washington, D.C. Industrial Market with Three Separate Transactions in December Totaling $90 Million and 500,000 Square Feet
BOSTON–(BUSINESS WIRE)–Oliver Street Capital (“OSC”), a value-add investor focused on infill industrial properties, and Bain Capital Real Estate, the real estate investing business of Bain Capital, today announced the acquisition of three infill industrial properties across the Washington, D.C. metropolitan area. The transactions were completed in December 2021 and total more than 500,000 square feet and approximately $90 million of combined value.
OSC and Bain Capital Real Estate formed a joint venture in September 2019 to acquire high quality, infill industrial properties in select, supply constrained markets. Since inception, the partnership has closed or has under contract more than 30 transactions totaling over 4.3 million square feet and has been one of the most active industrial buyers in the Boston market. With over $800 million of capital deployed over the past 18 months, the joint venture plans to continue to grow its portfolio in both Boston and Washington, D.C.
The properties include:
7701 Southern Drive in Springfield, Virginia, a 100% leased 251,178-square-foot multi-tenant warehouse located just off the Capital Beltway, less than two miles from the I-95/I-395/I-495 interchange (aka the “Mixing Bowl”);
4801 Viewpoint Place in Cheverly, Maryland a 48,665-square-foot single-tenant industrial building located on 6.5 acres, two miles from the Maryland-D.C. border; and
3300 Marlo Drive in Forestville, Maryland, a 216,000-square-foot warehouse and showroom located at the junction of the Capital Beltway and Pennsylvania Avenue. The asset was acquired in partnership with CGMG Capital, a Dallas-based real estate investment and development firm led by Chase Galbraith.
“We’re excited to enter the Washington, D.C. market with the acquisition of three well-located industrial properties that provide excellent access to the Capital Beltway, downtown Washington, D.C. and the surrounding areas,” said Jonathan O’Donnell, Managing Principal of OSC. “Bain Capital Real Estate has been a fantastic partner with a shared conviction in the space that has enabled us to leverage our sourcing capabilities and asset management platform to grow our portfolio and enable the expansion of our strategy,” added Jonathan Hyde, Managing Principal of OSC.
“This expansion into the Washington D.C. area is a natural progression of both our successful partnership with Oliver Street Capital and our thematic and targeted approach in investing in select infill industrial markets,” said Andrew Terris, a Managing Director at Bain Capital Real Estate. “We look forward to continuing to partner with Oliver Street Capital to selectively build a best-in-class portfolio in the Washington, D.C. area in the years ahead.”
About Oliver Street Capital
Oliver Street Capital is a Boston-based real estate investment firm focused on acquiring industrial properties on the east coast. The firm was founded in 2014 by Jonathan Hyde and Jonathan O’Donnell and has acquired over 4.9 million square feet of industrial buildings as a firm. To find out more, visit www.oliverst.com.
About Bain Capital Real Estate
Bain Capital Real Estate (www.baincapital.com/businesses/real-estate) was formed in 2018 and pursues investments in often hard-to-access sectors underpinned by enduring secular trends that drive long-term demand growth for real estate assets and services. The Bain Capital Real Estate team has been executing its strategy since 2010 (formerly as a part of Harvard Management Company), having invested and committed more than $5.7 billion of equity as of September 30, 2021 in over 500 assets across multiple sectors. Bain Capital Real Estate focuses on small to mid-sized assets where the team applies its deep industry expertise to accelerate impact and drive operational improvements. Bain Capital Real Estate’s strategy aligns with the value-added investment approach that Bain Capital pioneered and leverages the firm’s global platform and significant experience across asset classes to further bolster its insights and sourcing capabilities.