Key facts
- Centerbridge Partners acquired an ownership interest in Merritt Properties for $750 million.
- Almanac Realty Investors participated in the investment, maintaining its nearly 30-year stake.
- Merritt Properties plans to use the capital to expand its portfolio in the shallow-bay industrial sector.
- Robb Merritt was appointed CEO, with Scott Dorsey transitioning to executive chairman.
- Bobby Lanigan was named president, focusing on acquisition and strategic growth.
Centerbridge Partners has acquired an ownership interest in Merritt Properties, a family-owned development firm, through a $750 million investment. Almanac Realty Investors, a subsidiary of Neuberger Berman, also participated in the transaction, maintaining its nearly 30-year stake in Merritt.
Merritt Properties, founded in the 1960s and based in Maryland, develops and owns office, industrial, and retail buildings. The company is also undergoing leadership changes: Robb Merritt has been appointed CEO, succeeding Scott Dorsey, who will serve as executive chairman. Bobby Lanigan, previously leading acquisition and growth initiatives, has been named president.
The new capital will support Merritt's strategic expansion into the shallow-bay industrial sector, focusing on acquiring and constructing warehouses in Maryland, Virginia, North Carolina, and Florida, with plans to enter new markets. This segment, characterized by buildings of 50,000 square feet or smaller designed for multiple tenants, is currently experiencing undersupply following a recent boom in large-box warehouse construction.
Centerbridge, which manages $47 billion in assets across private equity, credit, and real estate, views shallow-bay industrial as a high-conviction investment theme. The firm has invested over $12 billion in real estate since 2005 and partners with vertically integrated operators like Merritt.