SOUTH BRUNSWICK, NJ—Duke Realty Corporation is acquiring a 10-building industrial portfolio totaling 3,424,732 square feet from Chicago-based Bridge Development Partners for approximately $515 million. About 2.3 million square feet of the portfolio represents New Jersey facilities or parcels under construction.
Each of the assets are newly constructed state-of-the-art facilities in the nation’s top infill industrial markets of Northern New Jersey, Southern California and South Florida. The transaction will be completed in phases, with the first and second phases having closed on September 27th and October 25th, and the final phase expected to close near the end of the year. In addition to the 10 completed properties, the deal includes two land parcels on which two properties totaling 852,745 square feet where buildings will be constructed, beginning later this year. Once fully constructed the total cost of the portfolio will be nearly $700 million.
“We are extremely proud of the accomplishments of our New Jersey team,” says Jeff Milanaik, regional partner for Bridge. “Developing over 3.1 million square feet of buildings worth over $520 million in three years in such a challenging market as New Jersey is a testament to the talents and tenacity of our team.”
This is one of 2017’s largest industrial sales and brings Bridge’s year to date sales volume to over $1.1 billion.
The New Jersey properties included in the first two phases of the sale are:
- Bridge Point South Brunswick, a 488,884-square-foot building at 773 Davidson Mill Road in Monroe Township, NJ. This building is fully leased to two regional third-party logistics companies who valued the property’s proximity to the Exit 8A interchange off the New Jersey Turnpike.
- Bridge Point Meadowlands, 5 Ethel Blvd., Woodridge, NJ, is one of the land parcels in the deal currently under construction. Upon completion, the new state-of-the-art facility will total 193,805 square feet.
- Bridge Point Carteret, a 206,500-square-foot building located just off Exit 12 of the Turnpike at 900 Federal Blvd., Carteret, NJ. The building is fully leased to Virginia Dare Extracts for 15 years, which relocated its long-time operations from Brooklyn, NY.
- Bridge Point Cranbury, a 264,085-square-foot building that was recently leased and is located at the intersection of 130 and Broadway Road in Cranbury Township, NJ.
“This portfolio sale is part of the $1.1 billion of new state-of-the-art industrial assets Bridge will sell in 2017,” says Steve Poulos, founder/CEO of Bridge Development Partners. “The portfolio includes a mix of fully stabilized, partially stabilized and completely vacant assets.”
Brokers with CBRE National Partners and HFF helped to arrange the sale to Duke Realty.
CORRECTION, 11/09/2017, 2:27 p.m.: Because of incomplete information provided by Bridge’s representatives, an earlier version of this story did not mention CBRE and HFF, both of which helped to broker the sale.