A well-established, multi-tenant industrial asset traded this month in a sale orchestrated by Cushman & Wakefield’s New Jersey capital markets team. Sholom Davidowits of Davco Group, a New York-based real estate investment company, purchased the 10+ acre, six-building complex at 114 Beach Street in Rockaway from The Silverman Group. This purchase is the second industrial complex Davco Group added this year to their diversified real estate holdings.
Totaling 170,000 square feet, 114 Beach Street is 99% leased to 17 tenants, including light manufacturing, service and distribution companies.
“This property benefits from stable cash flow and a diverse rent roll of long-term occupants,” noted Cushman & Wakefield’s Andrew Schwartz, who represented the seller and procured the buyer with investment sales specialists Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Andrew MacDonald and Jordan Sobel, with assistance from industrial market specialist Stephen Sander. “Demand for industrial product in Northern New Jersey is at historic highs, and this opportunity drew significant interest and multiple offers from the investment community, including private firms from New Jersey and New York.”
114 Beach Street is located less than one mile from I-80 and Route 46 in the heart of Morris County, providing access to more than 34 million customers within a three-hour drive. The densely populated, affluent region just 35 miles west of New York City has made it a target location for “last mile” distributors and service providers alike. At the same time, the immediate area is known for its favorable labor market conditions for warehouse employment.
“Within this context, 114 Beach Street boasts historically strong occupancy – with an average occupancy of 97 percent over the past 10-plus years,” MacDonald added. “As both online retail sales and manufacturing are expected to trend higher, the New Jersey industrial market is poised to remain one of the healthiest markets in the nation. Northern New Jersey’s 635-million-square-foot inventory; proximity to New York City, The Port of New York/New Jersey and Newark Liberty International Airport; and concentrated highway infrastructure makes it a preferred location for companies that need quick access to the robust New York Metro area.” Based in East Rutherford, Cushman & Wakefield’s New Jersey capital markets team specializes exclusively in office, industrial, multifamily, land and retail property trades throughout New Jersey, New York and Fairfield County, Conn. The group has completed $32 billion worth of transactions since 2000, closing over $3.3 billion in sales in 2018.
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