PNY Technologies Sells NJ Industrial Property
- Oct 30, 2018
A joint venture between Turnbridge Equities and Harbor Group International LLC has acquired 100 Jefferson Road, a 540,103-square-foot industrial property in Parsippany, N.J., from PNY Technologies, and leased back 25 percent of the building to the seller.
Cushman & Wakefield handled the transaction for both parties, with teams from the firm’s investment sales, finance, leasing and asset management working together to structure the deal.
“It’s a great time to be involved in anything industrial,” Gary Gabriel, Cushman & Wakefield’s vice chairman of Capital Markets, told Commercial Property Executive. “If you’re a buyer, from a fundamentals perspective, it’s a great time; if you’re a seller, it’s a great time because values have moved commensurate with the improvements and fundamentals.”
With PNY Technologies taking back space to continue to operate from its headquarters in the building, approximately 400,000 square feet of industrial space are available for lease.
“PNY took back some of the space but not all, so the new buyers have the opportunity to expose a large chunk of space to a market that’s starved of quality industrial,” Gabriel said. “They’re going to be opportunistic. In this environment, having vacancy in certain respects is better than having leased space.”
Of that space, nearly 200,000 square feet feature 38-foot clear height, high-cube space.
“It’s good functional space,” Gabriel said. “It has a nice high-base section associated with it, it has good parking, is adequately well loaded and it’s divisible.”
The property is situated on about 36 acres, and is just a few minutes from routes 10, 46 and 202, and the Morristown CBD. It’s also just 30 minutes from New York City, Newark Liberty International Airport and the Port of NY/NJ.
“The property is extremely well located at the intersection of 287 and 80. It’s also near a lot of population, which is important these days in industrial,” Gabriel said. “You can access the city if you need to and it’s very densely populated.”
Upgrades keep on coming
PNY Technologies acquired the property from Pfizer and worked on a considerable amount of capital improvements during the time it owned the building. The company added a solar array, fixed the roof and renovated the entire exterior of the building, as well as the office areas and restrooms.
According to Gabriel, Turnbridge has a long track record of successful investments, and the depth of its expertise and professionalism was clear in the transaction from start to finish. As such, the joint venture has commenced a $4.5 million capital improvement program that will introduce Class A warehouse space, and include new parking and loading areas, new office space and building entrances, as well as new mechanical systems.
Joining Gabriel on Cushman & Wakefield’s New Jersey capital markets team were Kyle Schmidt, Andrew Merin, David Bernhaut, Brian Whitmer and Ryan Larkin. Meanwhile, John Alascio, Sridhar Vankayala, Mark Ehlinger, Noble Carpenter III and Zachary Kraft from Cushman & Wakefield’s equity debt & structured finance group arranged acquisition financing.
Cushman & Wakefield will offer both property management and construction management services. Jason Goldman and Andrew Siemsen will handle leasing for the space.
In August, Gabriel and his Cushman & Wakefield team brokered the sale of Somerset Financial Center, a 233,000-square-foot office complex in Bedminster, N.J., which changed hands from Related Cos. to P3 Properties.
Image courtesy of Cushman & Wakefield