Crow Holdings Inks Mega-Lease in New Jersey
- Dec 19, 2019
LG Electronics USA has signed a seven-year lease to occupy the entire 925,000-square-foot industrial building in Franklin, N.J., when it’s completed in the first quarter of 2020.
The industrial property known as Crow Holdings at Veronica Ave. is located at 50 Veronica Ave. The owner, Crow Holdings Industrial, acquired the property in the first quarter of 2019 with the help of The Carlyle Group and broke ground on the project in the following quarter. The Veronica Avenue development is expected to open in March 2020 and will feature large translucent windows, 40-foot clear heights, 170 trailer parking spots, 159 dock positions, 394 car spaces and four drive-in ramps and doors. The property will also be situated near the New Jersey Turnpike, the I-287 and New Jersey Transit’s trains and buses.
Crow Holdings Industrial was represented by Cushman & Wakefield’s Vice Chair Stan Danzig and Associate Kimberly Bach, while LG was represented by Cushman & Wakefield’s Executive Managing Director James Frank and Vice Chair Jules Nissim.
Clark Machemer, Crow Holdings Industrial’s senior managing director of the Northeast, said the rapid growth of e-commerce has created a record-level demand for industrial space. But with high demand, there are still very few speculative buildings of this size being built in central Jersey, according to Machemer.
Danzig added that the high demand can also be attributed to a lacking development pipeline, as most developers have a hard time finding suitable land. That demand has led to a lot of interest during the marketing process for 50 Veronica Ave., where the Cushman & Wakefield team spoke to many interested potential tenants before going with LG.
A quick start
With their first project in New Jersey leased up, Crow Holdings Industrial is building strong initial momentum for its operations in the area. The company began looking into New Jersey in mid-2018 and kicked things off by purchasing the Veronica Avenue property shortly after. Crow Holdings Industrial has also recently sold off their 677,383-square-foot industrial property for $100.5 million.
Crow Holdings has more than 5 million square feet in the development pipeline in the Northeast, just 18 months after breaking ground on the New Jersey building. According to a company spokesperson, Crow Holdings Industrial is planning to begin construction on at least 1 million square feet of projects in 2020.