(Mark your Calendars: RealShare New Jersey in New Brunswick on September 13.)
MOUNT OLIVE, NJ-350 Logistics LLC, the distribution arm of kosher food product manufacturer Manischewitz Group, has signed a lease for 208,904 square at 350 Clark Drive here, relocating its warehouse/distribution operations from Clifton, NJ.
The deal follows Manischewitz’s opening of its 200,000-square-foot corporate headquarters building in Newark earlier this year. In fact, food manufacturers have been increasing their presence in the 450,000-square-foot building as Performance Food Group, parent company of leading foodservice distributors, relocated from Parsippany to 119,682 square feet at 350 Clark Drive.
“It comes down to the basics of survival. In this economy, you look at the products you’re buying, whether it’s food, clothing or other essentials,” Mitchell Katz, managing director of Newmark Knight Frank, tells GlobeSt.com. With associate Jason Grosse, Katz represented owner 350 Clark Drive LLC, Mountain Lakes, NJ. “Food happens to be one of the two hot markets.”
The northwestern New Jersey location also is helpful. “If you need 100,000 square feet or larger, in the high-end range there is little along the Interstate 80 corridor,” Katz says.
The tenants, at the result, were in a much stronger negotiating position, he notes. Cushman & Wakefield represented Performance Food Group, while Jones Lang LaSalle represented 350 Logistics. “They could have gone down the Turnpike,” Katz observes. “Our landlord said, ‘What do I have to do to get it done?’ We got creative in how we structured deals.”
Katz declined to give exact rental rates, but did say that they were “truly market deals.” Industrial rates in the area range from $4.95 per square foot to $11 per square, according to LoopNet.
Katz has a long association with the building, dating from 1989 when Calvin Klein Cosmetics moved from Wayne to 350 Clark Drive. Later, when Coty, which had acquired the company, relocated Klein, Katz was retained to sell the building, which consists of 350,000 square feet of warehouse space and 100,000 square feet of office.
The industrial space is now 90% leased, and Katz also is focusing on leasing the 40,000 square feet of available office space. Current tenants include Anthem, Lion Ribbon and M&M Mars. LoopNet lists the asking rent for the office/showroom space in the building as $19 per square foot.
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