A combination of location and demand for e-commerce continues to drive industrial activity across New Jersey, spurring increased activity in the already robust northern and central regions of the state and driving a frenzy of activity in the south. Unlike some of the previous speculative booms, however, this one appears be carefully thought out and is likely to be sustainable. Northern and Central New Jersey We are seeing an enormous increase in the number of tenants interested in the market who face a limited supply. Across Northern and Central New Jersey, a record low vacancy rate of 3.4 percent is pushing rental rates to an all-time high despite a healthy but cautious building cycle. The region is an inherently attractive one, thanks to its proximity to New York City and Port Newark as well as the ability to reach 60-plus million people in the tri-state area in a matter of hours. Speculative development across North and Central New Jersey is ongoing, and we anticipate a number of legacy sites to be redeveloped during the next two- to five-year period. Of course, the 2008 recession remains on everyone’s mind. Accordingly, speculative velocity is not as robust as it was in previous …
BRIDGEWATER, N.J. — LCS has closed acquisition financing and started construction of The Delaney of Bridgewater, a new seniors housing community in Bridgewater, approximately 45 miles southwest of Manhattan. Totaling 262,000 square feet, the property will be the fifth under the Delaney brand for LCS and the first outside Texas. When complete, the community will offer 122 independent living apartments, 15 freestanding villas, 56 assisted living units and a 32-unit memory care neighborhood. The community is slated to open in the fall of 2020. Financial terms were not disclosed, though BMO Harris was involved in the construction financing.
KEARNY, N.J. — Cushman & Wakefield has brokered the sale of a six-acre development site in Kearny. The sales price was undisclosed. A multifamily community is planned at the property, which is located at 60 Passaic Ave. The site is a former industrial property that has sat vacant for three decades. Brian Whitmer, Robert Shapiro, Andrew Merin, David Bernhaut, Gary Gabriel and Ryan Dowdof Cushman & Wakefield represented the seller, a family estate, in the transaction. The buyer was Russo Development.
TOTOWA, N.J. — HFF has arranged the $51 million sale of a 382,596-square-foot, newly constructed industrial building in Totowa. Located at 700 Union Boulevard, the single-story property was completed in 2018 and sits on more than 26 acres. Joe B. Thornton Jr., Jon Mikula, Jose Cruz, Marc Duval and Jordan Avanzato of HFF represented the seller, The Hampshire Cos., in the transaction. The buyer was undisclosed.
ROSELAND, N.J. — NKF has negotiated the $17.2 million sale of a 115,422-square-foot office building in Roseland. Located at 3 Becker Farm Road, the property is currently 97-percent leased to a tenant roster that includes Mandelbaum Salsburg and Tompkins McGuire. Kevin Welsh, Brian Schulz and Chuck Kohaut of NKF’s Tri-State Capital Markets represented the seller, Normandy Real Estate Partners, in the transaction. The buyer was international real estate fund Westwood Properties. The property was recently renovated with $2 million in capital improvements
NORTH PLAINFIELD, N.J. — Marcus & Millichap has arranged the $1.6 million sale of a retail property net-leased to Dunkin’ Donuts in North Plainfield. The 1,800-square-foot property is located at 885 US Highway 22. Alan Cafiero, Ben Sgambati, Brent Hyldahl, David Cafiero and John Moroz of Marcus & Millichap’s New Jersey office represented the undisclosed seller in the transaction. The buyer was a personal trust.
ABERDEEN, N.J. — LA Fitness has signed a 34,000-square-foot lease at Aberdeen Plaza in Aberdeen. The shopping center is located at the intersection of Route 35 and Cliffwood Avenue. LA Fitness will take possession in spring 2019. Area retailers include Target, Costco, Pier 1 Imports, Stein Mart, BJ’s, and Modell’s. Michael Horne of CBRE and John Kalamaris of RealSource Partners represented LA Fitness in the transaction. Basser Kaufman, the owner of Aberdeen Plaza, represented itself.
NEW YORK AND NEW JERSEY — Supermarket chains Lidl US and Best Market have announced an agreement in which Lidl will acquire 27 Best Market stores in New York and New Jersey. Beginning next year, the German discount retailer will convert the Best Market stores to the Lidl brand. The process will involve the remodeling, reinvestment and reflagging of Best Market locations as Lidl stores. Best Market is a privately owned fruit and grocery store chain headquartered in Bethpage, New York. Of the 27 Best Market locations, 24 are located in Long Island, two are located in New York City and one is located in New Jersey. The terms of the acquisition are undisclosed, and it is expected to close in the first quarter of 2019.
NEWARK, N.J. — Goldman Sachs Asset Management Private Real Estate and Madison Marquette have acquired Springfield Avenue Marketplace, a newly constructed, 112,000-square-foot retail center in Newark. The sales price was not disclosed. The fully occupied property is anchored by a ShopRite grocery store and includes a mix of restaurant, retail and medical tenants. The seller was not disclosed. Springfield Avenue Marketplace is located at the intersection of Springfield Avenue and Jones Street, approximately one mile from Newark Penn Station.
BLOOMINGDALE, N.J. — NAI James E. Hanson has negotiated the sale of a 2,200-square-foot retail property in Bloomingdale. The sales price was undisclosed. LJ Koch of NAI James E. Hanson represented the seller, Waldo LLC, in the transaction. The buyer was undisclosed. Located at 217 Hamburg Turnpike, the building previously served as the home of Walker’s Deli. The new owner plans to renovate and reopen the space as a high-end café, which will feature unique coffee drinks, homemade baked goods, and fresh, made-to-order breakfast and lunch items.