(To read more on the industrial market, click here.)
NEW YORK CITY-Rockefeller Group Development Corp. and MC Realty Inc. have acquired two development properties as part of a joint-venture agreement. The team expects to invest approximately $130 million to develop the sites. The companies also intend to pursue joint ventures for other potential real estate development projects in the future.
They've acquired an 80-acre industrial site just off Interstate 80 in Minooka, IL and a 40-acre park located in the New Jersey Meadowlands. Both sites will be developed by RGDC. The deal marks the firm's first development in Illinois and a continued concentration on the New Jersey market. A spokesperson for locally based RGDC tells GlobeSt.com that Minooka is a $50-million project and the Meadowlands site is an $80-million effort.
Located near the four-way interchange at Ridge Road and I-80, the Minooka site is zoned and annexed and planned for a nearly 1.4-million-sf, 32-foot clear height distribution facility that is divisible to 300,000 sf. The building is designed for users with flexibility in mind, specifically, up to 387 trailer spots, 313 dock positions and 500-car parking.
The Meadowlands site is located on County Road in Jersey City. It is one of the last remaining undeveloped sites in the Meadowlands, providing users the ability to occupy a modern warehouse building in a market where most buildings are over 15 years old. The 40-acre parcel of land can accommodate more than 550,000 sf of distribution facilities in one or two separate buildings. An application for Foreign Trade Zone status is under way.
"Both the Greater Chicago area and New Jersey represent significant potential for growth in the industrial real estate market because of their proximity to major highways and metropolitan areas," says Les Smith, executive vice president of development for RGDC. "In addition to New Jersey, Florida and California, we consider the Chicago area one of our core regions for development."
MC Realty president Hiroshi Matsumoto adds that a key to the project will be RGDC's expertise in developing FTZs for major distribution clients. MC Realty has invested in industrial properties in Texas, Florida, Arizona and Illinois. Based in Los Angeles, the firm, a wholly owned subsidiary of Mitsubishi Corp., was formed in 1994 to administer and manage US real estate investment opportunities on behalf of the company. RGDC is a subsidiary of Mitsubishi Estate Co. Ltd. of Japan. Mitsubishi Corp. and Mitsubishi Estate are two different companies.
The brokers on the Minooka deal were Lynn E. Reich, SIOR, CCIM and Jeff Kapcheck, SIOR of Colliers Bennett & Kahnweiler, Inc., based in Rosemont, IL. Brokers for the Meadowlands deal were Stan Danzig, Stephen D. Elman and Noah Balanoff of Cushman& Wakefield New Jersey, East Rutherford.
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