Properties in the portfolio auctioned by Cushman & Wakefield, clockwise from upper left: 191 Talmadge Road, Edison, NJ; 1026 W. Elizabeth Avenue, Linden, NJ; 158 Paris Street, Newark, NJ; and 183 and 185 National Road, Edison, NJ
NEWARK/LINDEN/EDISON, NJ—Reflecting the New Jersey industrial market’s ongoing strong investment appeal, Seagis Property Group, DII Enterprises, and the Opper Group are walking away with five buildings totaling 343,000 square feet in Newark, Linden and Edison, the result of a competitive bidding process orchestrated by Cushman & Wakefield’s Metropolitan Area Capital Markets Group.
Seagis Property Group purchased two Port Newark buildings. The properties – at 158 Paris Street in Newark and 1026 West Elizabeth Ave. in Linden – total 101,000 square feet and are 98 percent occupied. In Edison, discount variety store chain DII Enterprises purchased a two-building complex at 183 and 185 National Road. The owner/occupier will ultimately use the 120,000-square-foot site as a regional distribution center, once tenant leases expire. DII Stores are located throughout the New York and New Jersey metropolitan area.
Finally, the Opper Group purchased 191 Talmadge Road in Edison. Totaling 122,000 square feet, the building sits on nearly 16 acres. It is fully leased to four tenants: Ashley Furniture, Zapp Fitness, Nixon Uniform Services and Fleet Pride.
“These properties are ideally situated at the heart of New Jersey’s Greater Port Region, benefiting from proximity to the largest East Coast port, Newark-Liberty International Airport, and the New York Metropolitan Area’s 23.4 million consumers,” says Gary Gabriel of Cushman & Wakefield, who orchestrated the recent activity with Metropolitan Area Capital Markets team members Andrew Merin, David Bernhaut, Kyle Schmidt and Brian Whitmer. “Seagis will be able to leverage significant upside through renewing leases and increasing below market rents.”
“The Edison properties are within minutes of I-287, providing efficient access to the New Jersey Turnpike/I-95,” says Schmidt. “This region, which has limited space availability and high barriers to entry, offers a deep labor pool, and desirable proximity to the same infrastructure and consumer population that benefit the Port Newark properties.”
The three transactions closed on parallel timelines and all drew strong interest, Schmidt notes.
“Tour and bidding activity was robust,” he says. “The DII purchase, in particular, is interesting in that it shows a space user stepping up to compete with institutional and private capital to acquire leased real estate for future use.”