Venture One Buys 100 KSF NJ Industrial Asset

Acting through its VK Industrial V LP fund, the company acquired a vacant warehouse in Fairfield in its second New Jersey deal of the past three months.
116 Lehigh Drive, Fairfield, N.J. Image courtesy of Venture One Real Estate

Venture One Real Estate has expanded its footprint in New Jersey with the acquisition of an industrial facility located at 116 Lehigh Drive in Fairfield. Acting through VK Industrial V LP, a partnership between Venture One and Kovitz Investment Group, the industrial real estate private equity fund manager and developer acquired the 107,100-square-foot vacant warehouse from Rochester Drug Co-Operative.


READ ALSO: COVID-19’s Impact on E-Commerce


Situated on just over 8 acres of land near the intersection of Interstates 80 and 280, 116 Lehigh first opened its doors in 1986. The facility last changed hands in 2014, when RDC acquired it for nearly $9.8 million. Venture One plans to upgrade the property with renovations of the office segment, as well as a parking lot overlay and certain demolition activity.

The purchase of 116 Lehigh marks Venture One’s second acquisition in New Jersey since the pandemic began to spread across the U.S. In May, the company completed the purchase of the 31,200-square-foot industrial building at 3 Alsan Way in Little Ferry through the VK Industrial V fund in a short-term sale-leaseback deal. “The investment sales market continues to remain active even in these hard times,” Todd Minerley, market officer, Northeast Region, with Venture One Real Estate, told Commercial Property Executive. “We have seen a few sales fall through or renegotiated due to the pandemic but for the most part the investment community is still bullish on the long-term outlook of the New Jersey industrial market.”

GARDEN STATE ALLURE

Buoyed by demand from the e-commerce and logistics industries amid the pandemic-induced rise in online shopping, the already-strong New Jersey industrial market continued to exhibit positive fundamentals in the second quarter, according to a report by Colliers International. Leasing activity increased 11.7 percent quarter-over-quarter to a total of 10.2 million square feet and positive net absorption persisted, coming in at 3.9 million square feet, leaving the availability rate at a historic low of 4.5 percent.

“The strong rental rate appreciation, tenant base and low vacancy rate are just a few factors that attracted us to the market,” Minerley said. “The Tri-State area’s population base and the increasing demand for last-mile locations have promoted strong fundamentals in the New Jersey market.” Venture One has tapped Colliers International’s Noah Balanoff, Jacquelyn Severino and Chris Haenn, the team that represented RDC in the sales transaction, to spearhead the marketing of 116 Lehigh.