Real Estate

CBRE Forecasts Continued Demand for NJ Manufacturing Facilities

CBRE predicts continued growth in manufacturing facility transactions through the end of 2018. According to CBRE Q3 research, the State of New Jersey is projected to complete 49 such transactions to close 2018, which would represent an approximately 63 percent leap since 2015 and points to increased investor interest in manufacturing facilities. Since 2015, there has been a steady uptick in number of manufacturing transactions, from 30 in 2015, to 43 in 2016 and 46 in 2017.

Further reinforcing the firm’s forecast, CBRE recently completed the sale of a 93,000-squarefoot manufacturing facility at 400 Claremont Avenue in Jersey City. The CBRE team of Thomas Monahan and Robert L’Abbate negotiated the transaction on behalf of the seller, Elementis Specialties, Inc. The purchase price was $17 million.

“It’s encouraging to see a steady rise in manufacturing transactions over the course of the last several years in New Jersey, with 2018 predicted to follow that same trajectory” said L’Abbate. “The Jersey City transaction is the perfect example of how developers can unlock the value of under-utilized manufacturing facilities in the Tri-State area.”

Located within the 440-Culver redevelopment zone and across from the West Side Avenue Hudson-Bergen Light Rail station, the property is well-suited for redevelopment to include high-density residential with a retail component.

The site was occupied by companies such as Daniel Products and Synres Chemical Corporate for close to 70 years. The transit-oriented site presents an attractive location with its proximity to downtown Jersey City and Manhattan. As proposed, the new building – a five-story, 600-unit residential and retail complex – would be the largest new development in the immediate area aside from University Place.

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