Cushman & Wakefield orchestrates the trade of 1 & 7 Costco Drive in Monroe Township, from Principal Real Estate Investors to Heitman LLC. Constructed in 2007, the 1.2 million-square-foot, warehouse/distribution asset sits in the heart of the New Jersey Turnpike Exit 8A industrial market.
“This transaction is the first widely marketed sale at Exit 8A in some time,” noted Gary Gabriel of Cushman & Wakefield’s Metropolitan Area Capital Markets Group, who headed the assignment with team members Andrew Merin, David Bernhaut, Brian Whitmer, Kyle Schmidt and industrial specialist Jules Nissim. “We conducted 25 tours and entertained significant bidding interest, reflecting investor strong appetite for one of New Jersey’s most sought-after industrial submarkets.”
According to Schmidt, the 1 & 7 Costco Drive offering represented an opportunity to acquire two fully leased, best-in-class industrial buildings in New Jersey’s highly desirable 8A market. The structures feature 36-foot clear heights, 145- and 130-foot truck courts, ample parking and trailer storage, and ESFR sprinkler systems. The property was brought to 100 percent occupancy last year with a 611,000-square-foot, Cushman & Wakefield-brokered lease to Ozburn-Hessey Logistics. Other tenants include CJ Foods, L.A. Enterprises and Standard Register.
“Bolstered by the market’s location half-way between New York City and Philadelphia – and resulting immediate access to 130 million consumers – the region has experienced positive net absorption averaging 1.5 million square feet over the past 14 years. Today, low vacancy rates and virtually nonexistent available large blocks are combining with future supply constraints to push rental growth. As a second generation of investors begins to move into the region, they will be well positioned to capitalize in strengthening market fundamentals.”
Based in East Rutherford, Cushman & Wakefield’s Metropolitan Area Capital Markets Group specializes exclusively in investment sales of office, industrial, multifamily and retail properties throughout New Jersey, New York, Fairfield County, Connecticut, Pennsylvania, and Delaware. The team has completed more than $17 billion worth of transactions since 2000, closing on $1.2 billion in 2014.Related Articles: