LG Signs 410 KSF New Jersey Industrial Lease
- Nov 27, 2017
Deutsche Asset Management has secured a full-building, 410,000-square-foot lease with LG Electronics at 159 Milford Road, a Class A distribution facility in East Windsor, N.J., developed by Trammell Crow Co.
“LG Electronics’ decision to occupy the entire building marks an important milestone in our investment strategy for the development of 159 Milford Road,” Todd Henderson, Deutsche Asset Management’s head of real estate, said in a prepared release. “Bringing this high-caliber credit tenant to this project is a significant win not only for our investors, but also for the Township of East Windsor. This achievement would not be possible without the support of the Township and our development manager Trammell Crow Company.”
The building is situated on approximately 28 acres and boasts a number of sought-after industrial features, such as a 40-foot clear height; 62 manually-operated rear dock doors and two drive-in doors; a 130-foot deep truck court; 355 car spaces; and 74 trailer spaces. The property also offers robust power and LED lighting capabilities, as well as an ESFR fire protection system.
“We welcome LG Electronics to the project and are thrilled they have selected 159 Milford Road for their expanded operations in New Jersey,” said Andrew Mele, Trammell Crow managing director of the Northeast metro business unit. “We are extremely pleased to have delivered a world-class industrial project on behalf of Deutsche Asset Management in one of the most important distribution corridors in the U.S.”
The team of Mindy Lissner, William Waxman, Steven Beyda, Dan McGovern, Robert Pine, Kevin Dudley and David Gheriani from CBRE represented the owner in the transaction. LG Electronics was represented by the JLL brokerage team of Melissa Holland and Brian Golden.
A Rising Industrial Area
NAI Hanson recently reported that the northern and central New Jersey industrial market saw more than 5.6 million square feet leased last quarter, an increase of more than 750,000 square feet from the prior quarter. Region-wide, high demand and limited new supply pushed the overall vacancy rate down to 4.5 percent. That’s led to a lot of activity in the space. For example, this summer, the Hampshire Cos., sold a six-building industrial portfolio totaling 1.2 million square feet in northern New Jersey for $146.9 million.
CBRE research shows demand in the state’s industrial sector, especially in the Turnpike corridor where demand is outpacing supply. The deal represented a rare opportunity to occupy a brand-new logistics center located immediately off of the Turnpike.
The distribution center sits directly off of Exit 8 of the New Jersey Turnpike, where the Turnpike Authority completed a new interchange as part of its roadway widening and improvement project. 159 Milford Road also benefits from the new thoroughfare, created to ease vehicle access from the Turnpike to Route 133.