Commercial real estate services firm Cushman & Wakefield has brokered the $18.9 million, off-market trade of a 360,000-square foot industrial property in North Brunswick. A private investor purchased the warehouse asset at 1735 Jersey Ave. from Murray Construction in a value-add play.
Built in 1980 and located on 16.5 acres, 1735 Jersey Ave. is a former Church & Dwight facility that has been occupied by a subtenant for several years. "This rail-served property benefits from ample parking capacity, favorable local taxes and a deep regional labor base," noted Cushman & Wakefield's Jason Goldman, an industrial specialist who headed the assignment with capital markets leader Andrew Merin, and other members of the firm's New Jersey industrial and investment sales teams. "At the same time, it is legacy industrial - and requires a significant upgrade to bring it to current standards."
The property's buyer, 1735 Jersey Avenue LLC, is pursuing approval to raise the roof from its current 21 feet to 40-foot clear. Other improvements will include ESFR sprinklers and a new, energy-efficient lighting program.
Cushman & Wakefield maintains a long-standing relationship with Murray Construction. "With the subtenant's lease set to expire, Murray approached us to explore the viability of selling or renovating the property," Merin noted. "The New Jersey industrial investment market is red-hot, with near record fundamentals and strong tenant demand. When Jack and his team expressed interest and the ability to take the property forward, it presented an ideal solution all around."
The New Jersey industrial market saw an all-time high in overall net absorption (14.9 million square feet) during 2016, and new leasing activity hit a 16-year high (30.2 million square feet), according to Cushman & Wakefield research. Vacancy remained at record low levels, ending the year at 5.0 percent - and just 3.4 percent in Middlesex County. These positive fundamentals drove annual warehouse space asking rents to levels not seen in more than a decade.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.