PATERSON, NJ—Underscoring the fevered demand for “last-mile” distribution locations in the populous northeastern consumer markets, a joint venture of Camber Real Estate Partners and Advance Realty has acquired the I-80 Distribution Center, 1200 Madison Avenue, Paterson, NJ. The property is a fully-leased, 245,000-square-foot industrial facility situated immediately off Interstate 80.
Terms were not disclosed, but according to Real Capital Analytics, a proprietary research database, the property was last acquired in 2013 by Ivy Equities for $14.9 million, or about $60 per square foot.
Demand for industrial space in this New Jersey submarket is driven by the area’s proximity to the Ports and the densely-populated communities of Northern New Jersey and New York City.
“This acquisition represents a rare opportunity to acquire an institutional-quality industrial asset within one of the most sought-after and supply-constrained markets in the United States,” says Alexander Cocoziello, principal and vice president of Advance Realty. “Historically, this building has enjoyed consistently strong occupancy, and we fully expect this trend to continue as the industrial market in New Jersey continues to tighten.”
The building features 30-foot ceiling heights and 21 loading positions, as well as ample car and truck parking. Currently 100-percent leased, the asset has experienced strong historical occupancy, and is leased to two tenants: M.Tucker, a Division of Singer NY, one of the largest independent food-service equipment distributors on the eastern seaboard, and SupplyOne, a packaging solutions company.
The property offers immediate proximity to the area’s robust highway infrastructure, which allows for convenient access throughout the entire New York Metropolitan Area.
“The property’s location is outstanding, as it sits only 15 miles from Manhattan, directly on a four-way interchange along Interstate 80,” says Dave C. Surti, principal of Camber Real Estate Partners.
The partnership plans to hold the asset as a long-term investment.
“The I-80 Distribution Center is in an excellent last-mile infill location and we are confident that it will continue to generate durable cash flow and benefit from the area’s superior consumer and labor base,” says Christopher M. Bellapianta, managing principal of Camber Real Estate Partners.
The project was marketed for sale by Cushman and Wakefield’s Metropolitan Area Capital Markets Group, including Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Kyle Schmidt and Ryan Larkin, and industrial leasing specialist Andrew Siemsen.
Cushman & Wakefield’s Equity Debt and Structured Finance Group, headed by John Alascio, and including Sridhar Vankayala and Noble Carpenter III, arranged the financing. Mortgage financing was provided by Hamilton, NJ-based First Bank.