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Cushman & Wakefield Inks Upper 287 Corridor Industrial Sale

A two-building industrial asset in Franklin Township has traded in a $15 million sale orchestrated by Cushman & Wakefield’s East Rutherford investment sales team. Greek Development purchased 400 & 500 Apgar Drive from High Street Realty; the 170,500-square-foot, “last-mile” asset is 91 percent occupied by 11 tenants.

The institutional-quality property garnered notable investor interest, according to Cushman & Wakefield’s Gary Gabriel, who represented the seller and procured the buyer with team members Andrew Merin, David Bernhaut,  Brian Whitmer, Kyle Schmidt and Andrew MacDonald, supported by industrial leasing specialist Andrew Siemsen.

“400 & 500 Apgar Drive are strategically located within a mixed-use business park less than one mile from I-287 Exit 12, offering exceptional labor access and proximity to the New Jersey Turnpike/I-95 and the East Coast’s largest port,” Schmidt noted. “This property historically has enjoyed high occupancy and tenant retention rates. It offers stable cash flow and upside via increasing rents to market and leasing two vacant units.”

Additionally, New Jersey’s 287 industrial submarket is benefiting from historic fundamentals, which is raising its profile, according to MacDonald. Year-over-year, the 287 Corridor has seen a marked decrease in available space, with the vacancy rate declining from 5.4 to 1.8 percent as of Q4 2017.

“This asset was a good fit for our portfolio and our strategy of long-term investment,” said David Greek, director of acquisitions, Greek Development. “We feel the Franklin submarket will continue to experience strong growth in the near future and the unit sizes in these buildings represent a niche of the industrial market that is currently underserved.”

“As space tightens all along the N.J. Turnpike, the Upper 287 region has become increasingly popular among industrial tenants and investors alike,” MacDonald noted. “They are capitalizing on the region’s location along the Boston/Washington D.C. corridor, just 40 miles southwest of Manhattan and 60 miles northeast of Philadelphia – enabling distribution to more than 130 million customers and one third of the nation’s population within one day’s drive.”

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