Centerbridge buys minority stake in Merritt Properties as leadership changes take shape

Centerbridge Partners has paid $750 million for a minority stake in Merritt Properties, giving the alternative asset manager a position in the Maryland-based commercial real estate company as Merritt also reorganizes its leadership team. According to The Real Deal, Centerbridge acquired the stake from Almanac Realty Investors, the real estate investment division of Neuberger Berman.

The valuation of Merritt was not disclosed. When the talks were first reported several weeks earlier, a $3 billion valuation was being pursued, but Merritt did not respond to a request for comment on that figure. Almanac also contributed to Centerbridge’s investment in Merritt, while CBRE advised on the transaction.

The deal arrives alongside a leadership reshuffle at Merritt, a family-controlled firm that dates back to the 1960s. Scott Dorsey is moving from chief executive officer to executive chair. Robb Merritt, who had been serving as president, is stepping into the CEO role, and executive Bobby Lanigan has been named president. Despite the investment, the Merritt family will retain majority control of the business.

Merritt’s portfolio totals more than 20 million square feet, with most of its holdings concentrated in Maryland, Virginia, North Carolina and Florida. Its properties include warehouses, distribution centers and office buildings. The new investment is expected to help fund expansion into new markets and support growth in shallow-bay industrial properties, which the source described as warehouses of 50,000 square feet or less that can accommodate multiple tenants.

For Centerbridge, the transaction adds to a growing real estate platform that has expanded in recent years. In early 2022, the firm closed its second real estate fund with $2.3 billion in capital commitments, exceeding a $1.5 billion target. That fund was aimed at a range of sectors, including self-storage and specialized storage, digital real estate, industrial and logistics, and residential, while also focusing on areas tied to changes in customer behavior, such as leisure and experiential real estate. Deals like this often pair fresh capital with a company’s next growth phase, and Merritt now appears to be entering that period with new backing and a new executive lineup.

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