High Street Logistics Pays $23M for New Jersey Warehouse
- Aug 12, 2020
High Street Logistics Properties recently took a piece of the Southern New Jersey industrial market for itself with the acquisition of 3100 N. Mill Road, a 432,000-square-foot warehouse in Vineland. The private equity real estate investment management company purchased the fully occupied asset from local real estate firm Vineland Construction Co. in a $23.2 million transaction.
Located on nearly 30 acres within the 2.7 million-square-foot Vineland Industrial Park, 3100 N. Mill sits halfway between Philadelphia and Atlantic City. The facility opened in 1989 and expanded to its current size in 1997. Today the property is 100 percent leased, with Ardagh Glass Inc. occupying the building in its entirety under a newly signed lease extension scheduled to expire in 2030.
CBRE National Partners’ Michael Hines, Brad Ruppel, Brian Fiumara and Lauren Dawicki marketed 3100 N. Mill on behalf of the seller.
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According to a second quarter report by CBRE, the Southern New Jersey industrial market, like most industrial markets in the U.S., is getting a boost from the increase in e-commerce activity as a result of the COVID-19 pandemic. The vacancy rate was 4.2 percent in the second quarter of 2020 and positive net absorption reached 2.5 million square feet year-to-date. Additionally, as noted in the report, “Southern New Jersey realized an increase in average asking lease rates.” And Vineland in particular continues to be a strong submarket with minimal availabilities, great labor, low direct vacancy and good build-to-suit activity, according to Hines.
High Street is well-positioned to continue to enhance its portfolio. The company is flush with capital, having completed the final close of High Street Real Estate Fund VI LP in March of this year with equity commitments totaling $500 million and a goal of amassing $1 billion of assets.
High Street’s purchases during the second quarter of 2020 included Cedar Crossing Distribution Center, a 129,500-square-foot distribution facility in the Houston area. The company also acquired a 539,100-square-foot portfolio in metropolitan Chicago through Fund VI.