New Jersey

New Jersey Industrial Market Displays Remarkable Resiliency Amid Pandemic

by Taylor Williams September 4, 2020

By Mark Russo, director of research, Newmark Knight Frank The industrial markets of Northern and Central New Jersey have held strong thus far in 2020 as heightened e-commerce activity has offset the disruption caused by COVID-19. Total e-commerce sales rose by 31.8 percent in the second quarter relative to that period in 2019, according to data from the U.S. Department of Commerce. While demand for retail and office space has been negatively impacted, steady rent growth and stable vacancy highlight the resilience of the industrial sector. Industrial tenants moving into new deliveries have helped generate 4.2 million square feet of positive net absorption year-to-date. Vacancy currently averages 4.3 percent, down from 4.5 percent a year ago. Meanwhile, the average asking rent grew by 2.1 percent over the past year to a record mark of $9.20 per square foot. Online Shopping Fuels Leasing Social distancing measures and store closures caused by the pandemic have accelerated the adoption of online shopping. This has led to increased demand for logistics and distribution space among e-commerce companies. In fact, e-commerce deals have accounted for 75 percent of industrial leasing activity in Northern and Central New Jersey since April, compared to a quarterly average of …

September 4, 2020

Development Loans New Jersey Northeast

Procida Funding Provides $52M Construction Loan for Multifamily Project in North Bergen, New Jersey

by Taylor Williams September 2, 2020

NORTH BERGEN, N.J. — Procida Funding has provided a $52.5 million construction loan for Manhattan Transit Village North Bergen, a 214-unit multifamily project in North Bergen Township, located across the Hudson River from Manhattan. The property will be located adjacent to the Tonnelle Avenue public transit station and will feature a mix of studio, one- and two-bedroom units, as well as a pool and a fitness center. The borrower and developer was the Demetrakis Family. Specific loan terms were not disclosed.

September 2, 2020

Acquisitions Industrial New Jersey New York Northeast

Sitex Group Acquires Two Industrial Properties Totaling 65,670 SF in The Bronx, Hackensack

by Taylor Williams September 2, 2020

NEW YORK CITY AND HACKENSACK, N.J. — Locally based investment firm Sitex Group has acquired two industrial properties totaling 65,670 square feet in the New York City area. The first property is a 25,670-square-foot warehouse located at 1155 Commerce Ave. in The Bronx that is occupied by the New York City Department of Sanitation. The second building is a 40,000-square-foot maintenance facility located at 600 S. River St. in Hackensack, New Jersey, that was formerly occupied by truck repair company Deluxe International Trucks. Greiner Maltz’s Atanu Bhattacharjee, Waterstreet Capital’s Carl Bronstein and Douglas Elliman Commercial’s Rick Dana arranged the transaction.

September 2, 2020

Leasing Activity New Jersey Northeast Office

Mendham Capital Management Signs 3,243 SF Office Lease Extension in Basking Ridge, New Jersey

by Taylor Williams September 2, 2020

BASKING RIDGE, N.J. — Mendham Capital Management, an affiliate of Raymond James, has signed a 3,243-square-foot office lease extension in the Northern New Jersey city of Basking Ridge. Rick Genthe and Sean O’Brien of Lincoln Property Co. represented the landlord, CIG Properties, in the lease negotiations. Lee Barnes of Woodman Group represented the tenant.

September 2, 2020

Healthcare Leasing Activity New Jersey Northeast

Englewood Health to Open 53,222 SF Medical Office in Jersey City

by Taylor Williams September 1, 2020

JERSEY CITY, N.J. — Locally based provider Englewood Health will open a 53,222-square-foot medical office at 2 Journal Square, a 325,000-square-foot building in Jersey City. The space will include medical offices for orthopedics, pain medicine, primary care, diabetes, OB/GYN, cancer, cardiology, pulmonology, urology and colorectal surgery. In addition, there will be onsite urgent care, breast screening and imaging, an infusion center and a laboratory. Greg Barkan, Remy deVarenne and Sam Bernhaudt of CBRE represented Englewood Health in the 15-year lease agreement. GAIA Real Estate owns the building and recently completed a multimillion-dollar renovation of it.

September 1, 2020

Acquisitions New Jersey Northeast Office

Cushman & Wakefield Brokers $140M Sale of Office Building in Iselin, New Jersey

by Taylor Williams August 31, 2020

ISELIN, N.J. — Cushman & Wakefield has brokered the $140 million sale of a 470,692-square-foot office building located at 194 Wood Ave S. in Iselin, located west of Staten Island. The sales price equates to $297 per square foot. Anchored by IBM, the property is located within the Metropark corporate office campus and was fully leased to seven tenants at the time of sale. Andy Merin, David Bernhaut, Gary Gabriel, Kevin Donner, Frank DiTommaso, Kevin Carton and Todd Elfand of Cushman & Wakefield represented the seller, AIG, in the transaction. The buyer was New York City-based investment firm Opal Holdings.

August 31, 2020

Leasing Activity New Jersey Northeast Retail

Madison Marquette to Handle Leasing of 383,000 SF Teterboro Landing Shopping Center in New Jersey

by Taylor Williams August 31, 2020

TETERBORO, N.J. — Madison Marquette has added Teterboro Landing, a 383,000-square-foot retail power center in Teterboro, about 20 miles northwest of New York City, to its leasing portfolio. The property was built in 2015 and was fully leased at the time of sale to tenants such as Panera Bread, BJ’s Brewhouse, Chick-fil-A, Habit Burger, European Wax and T-Mobile. BIT Teterboro Landing Shops Urban Renewal LLC owns the center.

August 31, 2020

Acquisitions Industrial New Jersey Northeast Top Stories

PGIM Real Estate Acquires 4.7 MSF National Industrial Portfolio for $425M

by Taylor Williams August 31, 2020

MADISON, N.J. — New Jersey-based PGIM Real Estate has acquired a portfolio of 15 industrial buildings totaling 4.7 million square feet for $425 million. Four of the buildings are located in the Atlanta metros of Lithia Springs, Buford and Union City. Six of the buildings are located in the Dallas-Fort Worth (DFW) metroplex, and two are located in the Phoenix suburb of Avondale. The remaining three buildings are located in the Denver area, but the addresses and submarkets of those assets were not disclosed. All of these developments are newly constructed projects or are nearing completion. In addition, the properties all feature 32- to 36-foot clear heights and ample dock doors, which the new ownership cites as key features in marketing to e-commerce users. “COVID-19 has not only supported the continued rise of e-commerce and distribution demand across the United States, but it has also significantly accelerated the existing trend,” says Cathy Marcus, global chief operating officer and head of U.S. equity for PGIM Real Estate. “As many more retailers and international corporations enter the U.S. industrial market or expand their presence in the sector, these state-of-the-art properties will be an attractive component of our broader industrial portfolio.” “This transaction …

August 31, 2020

Industrial Market Reports New Jersey Northeast Northeast Market Reports Pennsylvania

Philadelphia, Southern New Jersey Industrial Market: Everything Investors Need to Know

by Taylor Williams August 28, 2020

By Marc Isdaner, senior managing director, principal, Colliers International; and Ian Richman, senior managing director, Colliers International Strong job and population growth in recent years have caused the Philadelphia/Southern New Jersey industrial market to continually rise on the radars of both investors and developers. As the nation battles COVID-19, we see demand for industrial space growing as more users look to service last-mile customers in densely populated areas. This market is no exception. With the right guidance and counseling, investors can achieve strong returns here, even as variables like user demand and land/construction costs continue to rise, bringing valuations and sales prices along with them. Projects Get Bigger We continue to see developers take down large tracts near major thoroughfares in this region, oftentimes building on speculative bases. Examples of such projects are Mansfield Logistics Park, a 960,000-square-foot, two-building spec development by Clarion Partners off Interstate 295 in Burlington County that is nearing completion; and The Cubes at East Greenwich, a two-building spec development located off I-295 in Gloucester County. The latter project is being developed in an area that was largely inactive until 2018, as land sites and established industrial parks such as Pureland were essential built out. Scout …

August 28, 2020

Loans Mixed-Use New Jersey Northeast

JLL Arranges $116.3M Construction Loan for North Market Mixed-Use Project in Morristown, New Jersey

by Taylor Williams August 27, 2020

MORRISTOWN, N.J. — JLL has arranged a $116.3 million construction loan for Phase I of North Market, a mixed-use project that will be located in Morristown, about 30 miles west of New York City. At completion, the 32.6-acre project will consist of 350 multifamily units, 40,500 square feet of office space, a 150-room boutique hotel and 94,500 square feet of retail and restaurant space. Thomas Didio of JLL arranged the loan through an undisclosed life insurance company on behalf of the borrower and developer, The S. Hekemian Group LLC of Englewood, New Jersey. Phase I, which is expected to be complete in about 24 months, will focus on the multifamily component, which will include amenities such as a pool, fitness center, outdoor grilling areas, coworking space and saunas.

August 27, 2020

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