Merritt Properties announced a $750 million investment to continue expansion of its shallow-bay industrial portfolio and begin expansion into new markets.
The strategic investment will be led by Centerbridge Partners, L.P. (“Centerbridge”), a global investment firm, which acquired the ownership interest that was held by Almanac. Almanac is a real estate investment arm of Neuberger, which has been partners with Merritt since 1977. The Almanac-Merritt relationship helped Merritt grow into one of the largest privately-held commercial real estate companies in the Mid-Atlantic and Southeast. The company was started by Leroy Merritt, who was born in Dundalk, Maryland during the Depression.
As part of this transition, President Robb Merritt has been named chief executive officer of Merritt. He has been with the company for nearly four decades and been central to its operations and growth. Scott Dorsey, who was CEO, will become executive chairman and remain actively involved. Bobby Lanigan, who has led acquisitions and strategic growth initiatives, will become president of the company.
“This is an important milestone for Merritt Properties and reflects the strength of our business, portfolio and people,” said Merritt. “As we look ahead, we remain committed to the values that have guided the company for more than 50 years while continuing to invest in the markets, customers and partnerships that have defined our success.”
“Merritt’s legacy has been built through disciplined decision-making, strong customer relationships and a long-term focus on the markets we serve,” said Dorsey. “Centerbridge recognizes the value of that approach and shares our commitment to building on the foundation Leroy Merritt established.”
Demand for “shallow-bay warehouse space” is on the rise, and the term refers to small, flexible industrial warehouse spaces. These are buildings under 50,000 sq. ft. with clear heights between 14 and 28 feet. Multiple tenants can use them, and the shallow building depths allow for smaller, more flexible bays. This move puts Merritt in the position to develop and acquire more shallow-bay industrial properties in Maryland, Virginia, North Carolina, and Florida, and expand into new markets.
“We are entering this next phase with significant momentum, an exceptional team and a clear vision for future growth,” said Lanigan. “We are excited to work alongside Centerbridge and Almanac, two organizations that share our investment philosophy. This additional capital will allow us to expand our portfolio, pursue new opportunities and continue serving customers at the highest level.”
“Merritt Properties has built an exceptional business with a strong culture, experienced leadership team and a proven track record of growth,” said Matt Dabrowski, senior managing director and co-head of real estate at Centerbridge. “Shallow-bay industrial is a high-conviction theme across our real estate platform, and Merritt is exactly the type of best-in-class, vertically integrated operator we look to partner with. We are excited to work alongside the Merritt team as the company continues to expand its footprint and capitalize on attractive opportunities ahead.”
