Ares Management Solidifies Industrial Dominance with $650M Acquisition from EQT

Ares Management expands its industrial footprint with a $650M acquisition of 36 warehouses from EQT, amid strategic shifts in its primary income fund.

By: AXL Media

Published: Mar 25, 2026, 4:07 AM EDT

Source: Bisnow

A Massive Consolidation in Logistics Infrastructure

Ares Management continues its aggressive expansion into the industrial sector, securing a 36-warehouse portfolio from EQT Real Estate. The deal encompasses a diverse mix of assets, including 21 small-to-midsize distribution centers, seven bulk warehouses, and eight shallow-bay properties. To facilitate the purchase, Ares secured a $500 million two-year floating-rate loan co-originated by Wells Fargo, Barclays, and Bank of America. This acquisition marks the second major transaction between the two firms in recent months, following a 23-property deal finalized late last year.

Strategic Asset Value and Leasing Performance

The acquired portfolio maintains a high performance standard, currently boasting a lease rate of over 95%. Key assets driving the valuation include a 675,000-square-foot distribution hub in Cherry Valley, Illinois, and a 636,000-square-foot facility in Zanesville, Ohio, which are valued at $48.5 million and $47 million respectively. With average gross rents positioned at $5.78 per square foot, the portfolio represents a stable cash-flow play for Ares. The firm contributed approximately $168 million in equity to complete the transaction, underscoring its long-term conviction in the logistics and warehousing market.

Liquidity Management Amid Redemption Surge

The news of the acquisition arrives alongside a strategic shift in Ares' capital management. On March 24, 2026, the firm announced it would limit redemptions for its Ares Strategic Income Fund (ASIF) to 5%, despite receiving requests totaling 11.6% of the fund's value—roughly $1.2 billion. Ares executives emphasized that the decision was made to protect the interests of the vast majority of the fund's 20,000 investors. The fund, which manages over $20 billion in loans and securities, remains a cornerstone of the firm’s private credit and income strategy, despite recent downward pressure on Ares’ stock price.