Real estate investment firm Faropoint, which focuses on last-mile industrial properties in high population growth markets, has acquired two industrial parks in Allendale and Mahwah, totaling 770,064 square feet. The industrial centers, located in the North Bergen County submarket, were acquired for a combined $144.5 million.
Allendale Shallow-Bay Industrial Park, located at 1-3, 5-7 Pearl Court and 59 Route 17 in Allendale, which spans 35.1 acres and includes seven industrial buildings totaling 370,064 square feet.
Mahwah Industrial Center at 16, 70-82, 91-97 McKee Drive in Mahwah, which is a three-building portfolio totaling 400,000 square feet across 33 acres.
Both parks offer direct access to major throughways including Route 17, I-278, I-87, Route 208/4, Route 202, and the Garden State Parkway. Both sites also provide access to the New York City metropolitan area and the New York/New Jersey ports.
“North Bergen County is one of the tightest industrial submarkets in the state and continues to demonstrate positive market rent growth, leasing velocity and compelling fundamentals that make it a vital area for investment,” said Orry Michael, Faropoint director of acquisitions in Greater New York. “Faropoint has and continues to recognize a compelling opportunity within the light industrial and shallow bay arena, distinguishing itself from the conventional larger box industrial developments prevalent in the NYC metro and Northern New Jersey industrial markets. These high-quality buildings offer much-needed flexibility, divisibility, and functionality desired by a broad spectrum of infill and last-mile users seen in the market today.”
Faropoint entered the Northern New Jersey market with its first transaction in the winter of 2021. Since then, the firm has deployed roughly $300 million in capital across the region. Faropoint’s success in the highly competitive Northern New Jersey industrial market is a testament to the firm’s demonstrated execution capabilities amid recent economic disruptions.
“The fact that both facilities are 100% leased to reputable, credit-worthy tenants offers an opportunity to generate sustainable long-term returns, aligning perfectly with our investment strategy which emphasizes growth and stability at an irreplaceable basis,” said Itay Ron, Northeast Market Office at Faropoint. “These industrial parks offer a unique combination of flexible warehouse space in a central location that serves a range of high value tenants in the Northern New Jersey region. We look forward to continuing to strengthen our relationship with the owners and operators who serve this region in the future.”
Cushman & Wakefield’s Gary Gabriel, Kyle Schmidt, Ryan Larkin and Seth Zuidema facilitated the transaction, representing the sellers.
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