The sale of a two-building industrial offering in North Brunswick and New Brunswick reflects strong investor demand in New Jersey’s distribution corridor. Cushman & Wakefield’s Metropolitan Area Capital Markets Group orchestrated the trade of 1000 Corporate and 571 Jersey Avenue to Principal Real Estate Investors.
Totaling 458,000 square feet, both buildings are long-term leased to single tenants at below market rates. The 156,000-square-foot 1000 Corporate Road is occupied by Capacity LLC, an e-commerce warehouse and fulfillment center. Baking company Wenner Bread Products recently leased 571 Jersey Avenue and is repositioning that 302,000-square-foot building to accommodate its needs for baking, storing and shipping products.
“New Jersey is one of the most sought-after industrial markets in the country by tenants and investors alike, which made it no surprise that this offering generated lots of activity,” noted Cushman & Wakefield’s Gary Gabriel, who headed the assignment with Metropolitan Area Capital Markets Group team members Andrew Merin, David Bernhaut, Brian Whitmer and Kyle Schmidt. “Pricing significantly below replacement cost and predictable cash flows added to the buildings’ appeal.”
Gabriel noted that the Wenner Bread fit-out, which is ongoing, added a layer of complexity to negotiating the sale. “The timing and scope of the project required flexibility on the part of the investment community,” he said. “Principal Real Estate Investors did a great job navigating the process.”
Both 1000 Corporate Road and 571 Jersey Avenue offer critical accessibility to New Jersey’s highway network, port facilities, rail, 23.4 million New York Metro Area consumers and the region’s dense labor pool. “These buildings occupy ideal infill locations that ensure long-term tenant desirability,” Merin said. “Local and interstate highway accessibility allows access to one-third of North America’s population within one day’s drive time. They are also located within a 40-minute drive from the Port of Newark-Elizabeth – the largest port on the East Coast and the third-largest in the nation.”
Based in East Rutherford, New Jersey, 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 $1.5 billion in 2013.Related Articles: