American Real Estate Partners commits capital in its 6th transaction under the recently announced Strategic Opportunity Fund III

MCLEAN, Va.–(BUSINESS WIRE)–American Real Estate Partners (“AREP”) and its joint venture partner Machine Investment Group (MIG) today announced the latest investment in the logistics and distribution market, a 1,015,740 square foot industrial property located in Middletown, Delaware. This is AREP’s sixth investment through its Strategic Opportunity Fund III (“Fund III”) and is now 60% deployed.

The New Castle County industrial submarket has seen significant growth, with the new Highway 301 bypass transforming the ease of access to Middletown from Interstate 95. The current lack of easily accessible properties in South Jersey, northern Delaware and eastern Pennsylvania has driven tenants to seek strong alternative locations, the Middletown area being a prime example.

“At AREP, we have sought to invest in markets where we see growth in both rentals and rents,” said Doug Fleit, co-founder and CEO of AREP. We were attracted to this asset in a growing market, as demand from logistics and distribution companies as well as 3PL providers continues to lead market uptake.

Just a few weeks after announcing the closure of our third investment fund, this acquisition illustrates AREP’s commitment strategic and significant investments in the logistics market”, said Brian Katz, co-founder and president of AREP. “Our team has a proven track record of credibility and expertise in opportunistic investments, and we are proud to continue to diversify across our four asset pillars: industrial, data center, multi-family and office. We remain bullish on Fund III and will continue to work its capital wisely. »

In June, AREP announced the closing of Fund III with $63 million in equity commitments expanding the diversity of public and private institutional investors and family offices. Fund III will continue AREP’s focus on a value-added and opportunistic strategy, focusing on data centers, residential, industrial and office assets in urbanized urban and suburban East Coast markets. Fund III co-investment capital aims to invest in $1.5 billion to $2.0 billion of total asset value, using moderate leverage.


Based in the Greater Washington Metropolitan Area, AREP is an institutional fund manager and operating partner focused on data center, residential, industrial and office assets, both on a development basis and repositioning in various markets along the east coast.

Since the company’s inception in 2003, AREP has deployed over $5.1 billion in targeted geographies, acquired over 20 million square feet of Class A real estate, and currently oversees over 10 million square feet . AREP’s vertically integrated real estate platform and experienced management team offer exceptional expertise across all property disciplines, from acquisition to completion. Drawing on this expertise, AREP remains at the forefront of real estate innovation, maximizing investment and improving performance to bring added value to its investors. To learn more, visit AREP’s press room or follow us on LinkedIn.

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