A 110,000-square-foot industrial property in Cherry Hill was traded this week in a $7.6 million sale arranged by Cushman & Wakefield. GTJ REIT, Inc. purchased the fully leased asset at 1938 Olney Ave.
Following a long-term lease and local relocation of its primary distribution facility in 2016, the property’s sole occupant, Avalon Flooring, invested in various improvements to the building including motion-sensor LED lighting, a racking system including heavy-load racks, a new HVAC system, an upgraded building facade and an office build-out.
The property’s tenancy, recent improvements and location drew significant investor interest, according to Cushman & Wakefield’s Kyle Schmidt, who headed the sale assignment with Andrew Merin, David Bernhaut, Gary Gabriel and Brian Whitmer, Ryan Larkin and Andrew Schwartz – all members of the firm’s East Rutherford-based Metropolitan Area Capital Markets Group. The team worked with Philadelphia-based capital markets specialists Robert Yoshimura, Joseph Hill, Eric Mattson, and Joe Hill Jr. in representing the seller and procuring the buyer.
“Avalon Flooring is a strong regional tenant that has been in business since 1963,” Schmidt said. “The company’s long-term lease and infrastructure investment at 1938 Olney Ave. speaks to its commitment to the building. Additionally, the property occupies a prime location with great highway access, and proximity to a vast labor pool and dense population center.” The building sits less than two miles from a four-way interchange of I-295, minutes from Exit 4 of the NJ Turnpike.
The marketing team received strong first- and second-round bidding from a range of private and public investors seeking opportunities in the red-hot Southern New Jersey industrial market. Cushman & Wakefield reports that the regional occupancy rate continues to hover at approximately 96 percent, with Camden County boasting a low, 2 percent vacancy rate.
Cushman & Wakefield’s Metropolitan Area Capital Markets Group specializes exclusively in investment sales of industrial, retail, office, multifamily and land properties throughout New Jersey, New York, and Fairfield County, Connecticut. The team has completed more than $25 billion worth of transactions since 2000, closing over $3.2 billion in sales in 2016.