LOGAN, NJ-There were twelve offers on a fully-leased refrigerated food storage and distribution center here and it sold for more than the asking price, Marcus & Millichap reports.
The company handled the sale of the 70,000-square-foot facility, but did not disclose terms of the deal. The property is triple-net leased to Albert's Organics/United Natural Food Inc., the largest wholesale distributor of natural, organic and specialty foods in the United States and Canada.
Completed this year, the build-to-suit facility is located within the LogistiCenter business park at 1155 Commence Blvd. in Logan, 12 miles south of Philadelphia. The 1,100-acre master-planned business park is part of the Philadelphia MSA.
“The building's quality location in a top-rated industrial market and the competitive bidding environment we created drove the selling price well above the initial asking price,” said John Glass of M&M. Glass and Scott Pertel of M&M's San Francisco office represented the seller.
The buyer is a publically traded REIT based in the New York area. M&M vice president Michael Fasano, who was based in New Jersey until recently, also provided representation.
Pertel said the lease has an initial 15-year term, with two five-year renewal options. “The tenant can expand up to an additional 25,000 square feet, adding potential upside for the new owner,” he added.
The facility has direct access to Interstate 295, the New Jersey Turnpike, Route 120, Interstate 95 and rail service.
The one-story warehouse has a mezzanine office. It has a concrete foundation with steel framing and the exterior is concrete and steel siding.
United Natural Foods supplies 60,000-plus items to 23,000 customers, including independently owned retailers, Whole Foods, and traditional supermarkets. The company offers groceries, supplements, produce, frozen foods and ethnic and kosher food product.
“Demand for refrigerated warehouse space, particularly freezer space, is projected to continue as the growing frozen food industry keeps refrigerated warehouse facilities at or near full capacity,” said Glass.
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