NORTH BRUNSWICK/NEW BRUNSWICK, NJ—The sale of a two-building industrial offering in North Brunswick and New Brunswick reflects strong investor demand in New Jersey's distribution corridor. Cushman & Wakefield's Metropolitan Area Capital Markets Group orchestrated the trade of 1000 Corporate and 571 Jersey Avenue to Principal Real Estate Investors.
Totaling 458,000 square feet, both buildings are long-term leased to single tenants at below market rates. The 156,000-square-foot 1000 Corporate Road is occupied by Capacity LLC, an e-commerce warehouse and fulfillment center. Baking company Wenner Bread Products recently leased 571 Jersey Avenue and is repositioning that 302,000-square-foot building to accommodate its needs for baking, storing and shipping products. GlobeSt.com previously reported on the Wenner Bread lease.
“New Jersey is one of the most sought-after industrial markets in the country by tenants and investors alike, which made it no surprise that this offering generated lots of activity,” noted Cushman & Wakefield's Gary Gabriel, who headed the assignment with Metropolitan Area Capital Markets Group team members Andrew Merin, David Bernhaut, Brian Whitmer and Kyle Schmidt. “Pricing significantly below replacement cost and predictable cash flows added to the buildings' appeal.”
Gabriel notes that the Wenner Bread fit-out, which is ongoing, added a layer of complexity to negotiating the sale. “The timing and scope of the project required flexibility on the part of the investment community,” he says. “Principal Real Estate Investors did a great job navigating the process.”
Both 1000 Corporate Road and 571 Jersey Avenue offer access to New Jersey's highway network, port facilities, rail, 23.4 million New York Metro Area consumers and the region's dense labor pool.
“These buildings occupy ideal infill locations that ensure long-term tenant desirability,” says Merin. “Local and interstate highway accessibility allows access to one-third of North America's population within one day's drive time. They are also located within a 40-minute drive from the Port of Newark-Elizabeth – the largest port on the East Coast and the third-largest in the nation.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
