NJ Industrial Portfolio Changes Hands in $147M Deal

The transaction, comprising six northern New Jersey properties totaling 1.2 million square feet, represents the largest portfolio sale in the state this year.

200 Middlesex Ave., Carteret, N.J.
200 Middlesex Ave., Carteret, N.J.

The Hampshire Cos., a private real estate firm, sold a six-building industrial portfolio totaling 1.2 million square feet in northern New Jersey for $146.9 million.  The properties, ranging between 73,000 and 408,000 square feet, are located in Carteret, Lodi, Saddle Brook, South Hackensack and West Caldwell.

Managing Director Joe Thornton Jr., Senior Managing Directors Jon Mikula and Jose Cruz, Managing Director David Giancola and Associate Director Robert Borny led the HFF team and marketed the transaction on behalf of the seller. The Hampshire Cos. team was led by Todd Anderson and Mark Rosen, principals & executive vice presidents. Information regarding the buyer remained undisclosed.

The largest property included in the portfolio sale is located at 200 Middlesex Ave. in Carteret, N.J. and encompasses 408,437 square feet of warehouse space. According to Yardi Matrix data, the asset last traded in 2013, when The Hampshire Cos. purchased the property from Eaton Vance for $17 million. The one-story asset built in 1988 features clear heights between 26 and 28 feet, sky lights, mezzanine level, ESFR system and grade-level and dock-high loading doors.

5 Henderson Drive, West Caldwell, N.J.
5 Henderson Drive, West Caldwell, N.J.

Along with 200 Middlesex Ave., The Hampshire Cos. also sold a 73,373-square-foot property at 39 Robinson Road in Lodi, N.J., a 200,000-square-foot warehouse at 301 Mayhill St. in Saddle Brook, N.J., 30 Wesley & Worth, which is a 245,824-square-foot property in South Hackensack, N.J., as well as two properties located in West Caldwell, N.J.: a 210,530-square-foot asset at 5 Henderson Drive and an 80,000-square-foot asset at 2 Dedrick Place.  

The largest portfolio sale in New Jersey this year

According to Cruz, the transaction represents the largest portfolio sale in New Jersey this year. “The potential rental upside and strategic locations resulted in very aggressive pricing as demand for core plus industrial in the state continues to be very strong,” he added.

All of the properties are located in established industrial submarkets near demand drivers and major transportation arteries servicing their respective markets. At the time of the transaction, the portfolio was 96 percent leased. The tenant roster includes Continental Terminals, R.R. Donnelley, FreshPro Food Distributors and Sealed Air.

Given its access to the Ports and major area highways, northern New Jersey has become a hub for logistics real estate,” Anderson said in a prepared statement. “As e-commerce continues to grow it will fuel demand for logistics real estate. This demand will include new and existing space. Our northern New Jersey industrial portfolio offers immediate access to large population centers making it highly attractive for companies requiring last-mile facilities. With demand high and product limited now was the right time to execute our investment strategy and sell the portfolio. Together with our internal team at Hampshire, HFF proved to once again be an excellent partner in assisting us to market the transaction and produce a qualified buyer for the highly sought-after portfolio.

Images courtesy of Yardi Matrix