(To read more on the industrial market, click here.)
ROCHELLE PARK, NJ-Coca-Cola and Tri-Coastal Design Group have both renewed their leases for the third time at their existing locations in Northern New Jersey. The total amounts to 441,000 sf. In the larger of the two renewals, Coca-Cola Enterprises re-upped for the entire 243,000 sf of warehouse/distribution space it occupies at 118 Moonachie Ave. in Carlstadt, a building owned by ProLogis.
With the transaction, Studley has repped Coca-Cola in transactions totaling more than one million sf. "We explored the market for alternatives to a lease renewal," says Thomas R. Carragher, SVP and branch manager of Studley's North Jersey office here. "After looking at the options, we determined that a lease renewal enabled Coca-Cola to both reduce occupancy costs and maintain a good location for Northeast product distribution."
The renewal agreement runs for a five-year term and has an aggregate value of $10 million, which factors out to an average of about $8.20 per sf over the life of the lease. ProLogis was represented in-house by Marc Petrella.
"Although the ownership of 118 Moonachie has changed several times since Coca-Cola first moved there, we've always been able to negotiate cost-effective lease terms with each landlord," says Daniel Foley, senior managing director at Studley.
In the second renewal, Tri-Coastal Design Group, an export/import company, re-upped for the entire 198,000-sf warehouse at 905 Murray Hill Rd. in East Hanover. The five-year deal with owner New TG Hanover LLC is valued at approximately $4.7 million, which works out to an average of $4.75 per sf over the term.
"As we do with every potential lease renewal, we examined the market for alternatives," Carragher says. "Ultimately, this third lease renewal provided Tri-Coastal with reduced operational costs vs. the expense of relocation."
Studley represented Tri-Coastal Design since 1997, when the firm negotiated the company's original lease on Murray Hill Road, says Burton I. Gubenko, corporate managing director at Studley, who with Carragher represented both the tenant and the landlord. "At that time, we assessed the company's long-term growth projections and identified this facility as one that would enable the firm to expand easily. That proved to be true, since they've expanded three times over the past eight years."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
