Veronica Ave
Real Estate

LG Leases 925K Square Foot Warehouse in Franklin Township

Crow Holdings Industrial has signed a seven-year, full-property lease with LG Electronics USA at Crow Holdings at Veronica Ave, the 925,000-square-foot industrial development in Franklin Township it owns in partnership with funds affiliated with The Carlyle Group. LG will begin occupancy at the under-construction, state-of-the-art warehouse property in Q1 2020.

For Crow Holdings Industrial, the lease announcement is immediate validation of the company’s Northeast expansion strategy. After beginning New Jersey operations in mid-2018 with the hire of industry veteran Clark Machemer, the company acquired the Veronica Avenue property with The Carlyle Group in the first quarter of 2019 from Efrem Gerszberg of 2020 Acquisitions, and put shovel to ground on the speculative development in Q2. In addition to this property, which will be fully occupied when construction is completed in March 2020, Crow Holdings Industrial already boasts an impressive five-million-square-foot development pipeline less than 18 months after commencing regional operations.

“With the rapid growth of e-commerce and the overall strength of the economy, demand for industrial space is at record levels, and there are very few spec buildings of this size being built in Central Jersey,” said Machemer. “While we were in contact with a number of interested tenants, LG was drawn to the building’s large footprint and Crow Holding Industrial’s status as a premier developer. We’re proud to help bring such a well-regarded tenant to Franklin Township, and we look forward to replicating this strategy at our other Northeast developments in the years ahead.”

Located in close proximity to New Jersey Transit buses and trains, the New Jersey Turnpike and I-287, Crow Holdings at Veronica Ave was designed specifically to help appeal to the modern industrial worker. The property features include large translucent windows that allow natural light and LED lights that create an open and bright working environment. The building will have 40-foot clear heights and will include 170 trailer parking spots, 159 dock positions, four drive-in ramps and doors, and 394 car spaces.

“Franklin Township is excited to welcome LG to our community,” said Franklin Township Mayor Philip Kramer. “We believe in the positive benefits of economic growth and appreciate the investment Crow Holdings has made in our township.  We look forward to LG bringing jobs to Franklin and the opening of the facility in the beginning of 2020.”

Crow Holdings Industrial was represented by Cushman & Wakefield Vice Chairman Stan Danzig and Associate Kimberly Bach, while LG was represented by Cushman & Wakefield Executive Managing Director James Frank and Vice Chairman Jules J. Nissim.

“While industrial demand is at near-record levels, supply is currently lagging because of the challenges developers face in procuring suitable land,” said Danzig. “Crow’s impressive ability to identify this well-situated property and move quickly on acquisition and development will bring nearly 1 million square feet of much-needed industrial space to Central Jersey. We canvassed the market broadly and spoke with dozens of interested occupiers, before ultimately locking in a seven-year lease with LG.”

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