NORTHVALE, NJ—A private investment group led by Duvi and Tuli Blumenberg has acquired 207,193 square feet of industrial space on 16.3 acres at 251 Union St. from Pantheon Properties for $12.1 million, in a deal brokered by Cushman & Wakefield’s Metropolitan Area Capital Markets Group.
Meanwhile, in Flanders, NJ, NAI James E. Hanson brokered the sale of a 157,822-square-foot industrial building at 700 Bartley Chester Road. NAI Hanson’s John Schilp represented the seller, 700 Bartley Chester Road LLC and Josh Levering, SIOR, represented the buyer, CRG 700 LLC, in the transaction. Schilp sold the land to build 700 Bartley Chester to the original owner in 1988.
“The Northern Bergen County industrial market is very desirable but also land-constrained. It is one of the strongest industrial markets in the country,” Cushman & Wakefield director Andrew Schwartz says. Cushman & Wakefield served as exclusive agent for the owner. Schwartz led the team of Andrew Merin, David Bernhaut, Gary Gabriel, Ryan Larkin, all from the East Rutherford, NJ-based Metropolitan Area Capital Markets Group, as well as Andrew Siemsen from the Iselin office.
“We have seen a sustained shortage of available industrial space amidst unwavering strong demand from distribution and warehousing users in traditional markets such as the Meadowlands and Port Newark and Elizabeth,” said John Schilp of the Flanders deal. “As companies look west for affordable and available industrial space, regions like Morris County are becoming more attractive plays for investors searching for lower barriers to entry to acquire stable and income-generating properties. Our long-standing relationship with 700 Bartley Chester allowed us to leverage our experience and market knowledge to ensure a mutually beneficial deal for both of our clients.”
The buyer, CRG 700, purchased the property as a long-term industrial investment due to the continued high demand for well-located, over-100,000-square-foot industrial properties and the attractive terms of the current lease. The property’s tenant, Uncommon Logistics, has occupied the whole building since 2011 and signed a seven-year lease extension earlier this year. Uncommon Logistics is currently under contract to provide warehousing and logistics services to Givaudan Fragrances Corporation.
700 Bartley Chester Road has four one-ton crane rails and two half-ton crane rails, 11 tailgates, three drive-ins, 82 parking spaces and 8,524 square feet of office space. The property is in a Designated Free Trade Zone less than a mile from Route 206 and offers convenient access to Route 46 and Interstates 78, 80 and 287.
The northern New Jersey industrial market continues to enjoy a years-long decline in overall vacancy, making it one of the tightest industrial markets in the country.
“The current tenant distributes nationally from the site, which is ideally situated at the New Jersey-New York border in one of the wealthiest counties in the nation with access to the New York City metropolitan area’s 23.4 million consumers,” Schwartz says of the 251 Union Street location.