Hampshire Completes $300M Recapitalization of NJ Industrial Portfolio

The Hampshire Companies has completed a $300 million recapitalization of its Fairfalls Logistics Portfolio in New Jersey, which will now include support from a joint venture partner.

In total, the portfolio reaches 1.35 million square feet of industrial space, covering not only Fairfield – but also Little Falls, Elmwood Park, and Carteret, in the state. There are 30 buildings included, with the average size coming out to 45,000 square feet. The entire portfolio is 92 percent leased.

Newmark served as the real estate firm’s strategic advisor and helped with procuring an undisclosed JV stake partner to accommodate the recapitalization.

“The new partnership, combined with Hampshire’s decade-long stewardship of the Portfolio, will drive near-term value through mark-to-market rental increases and long-term capital appreciation through enhancing the Portfolio’s market position,” Kevin Welsh, executive managing partner of Newmark, focusing on the company’s capital markets in the Tri-State area, said in a statement.

According to Newmark, the portfolio features a wide range of zoning capabilities. That helps support manufacturing, light industrial uses, warehousing, and various tenants in a number of different industries. Plus, a total of $14.3 million was spent on renovations including new parking lots and roofs.

North New Jersey’s industrial market has some solid fundamentals to it. The area benefits thanks to its proximity to New York City. In fact, New York and New Jersey, in terms of yearly TEU volume, rank as the second biggest port complex in the country, according to Newmark. Plus, industrial asking rents in Northern New Jersey surged to $17.01 per square foot at the end of June, marking an 87 percent increase from 2019. Newmark said the area has “one of the country’s highest” averages for rent among the asset class.