(Read more on the industrial market.)
SOUTH BRUNSWICK, NJ-Niki International Inc., a manufacturer and importer of textiles, has acquired the 141,000-sf industrial building at 925 Georges Rd. in the Monmouth Junction section of this township. The sale price of just less than $7.7 million covers the currently building and its 30-acre site, and factors out to just more than $54 per sf of building space.
The property's seller, Jackson, NJ-based private homebuilder Kirsch Enterprises, was represented by Edward Horne and Martin Kreiman, partners in HK Commercial, a Colts Neck, NJ-based brokerage firm founded just a year ago. Niki International, which will use the property for warehousing and has an existing office location in East Brunswick, NJ, was represented by Lou Belfer of CB Richard Ellis.
More than a basic sale, the transaction had some unusual conditions involved, according to Horne. “We only had 90 days to finalize the contract, but a bigger challenge to clear was the building itself,” he says. “Issues such as a pre-existing environmental agreement, zoning and the physical plant itself threatened the process early on, but we were able to work around these issues.”
Built in 1975 as a manufacturing facility for American Can, the building wasn't considered “a traditional distribution type of property, as it contained varied ceiling heights,” Horne explains. “It was not constructed in a traditional rectangular or square footprint, and did not have an abundant amount of loading docks.”
There was also a pre-existing environmental agreement calling for ongoing site monitoring for pollutants following a completed remediation. “Not only did any potential new owner have to be informed of this, the new owner had to be approved by the entity that was responsible for the remediation.”
“Some of the factors that made the deal attractive to potential users/investors were that the sf of the building could potentially be expanded,” Kreiman says. “And rail access serving the site could be reactivated.”
Kirsch Enterprises bought the asset from American Can in 2003 for a reported $4.5 million. Leading to the just-completed sale, the building had been listed with an asking price of $10.9 million.
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