2401 East Linden Ave. and 1501-1525 West Blancke St. in Linden — Courtesy: Cushman & Wakefield
By Joshua Burd
Blackstone’s U.S. industrial real estate platform has expanded its New Jersey holdings, acquiring two fully leased Linden buildings with a combined 200,000 square feet.
Brokers with Cushman & Wakefield and Bussel Realty Corp. announced Friday that Link Industrial Properties has closed on the properties at 2401 East Linden Ave. and 1501-1525 West Blancke St. Penwood Real Estate Investment Management sold the buildings, which total 84,220 and 115,913 square feet, respectively, for an undisclosed price.
“New Jersey’s Greater Port Region has long served as a magnet for tenants and investors alike,” said Cushman & Wakefield’s Kyle Schmidt, a member of the firm’s New Jersey capital markets team. “This location provides momentary access to the Port of New York and New Jersey, Newark Liberty International Airport and New York City. There are 1.4 million people within seven miles and the region is supported by highly sought-after labor demographics.”
Schmidt represented the seller alongside Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Kyle Schmidt and Ryan Larkin, along with Jordan Metz of BRC. They noted that the buildings, which are leased to five tenants, drew strong interest thanks in part to the opportunity to increase net operating income.
Both properties are within a mile of Routes 1 and 9 and minutes from the New Jersey Turnpike and interstates 287, 278 and 78. According to C&W research, vacancy in the submarket is 2.6 percent, near a historic low, with warehouse rates rising 26.1 percent since year-end 2017.
“Some of the tenants have leases expiring in the near-term at below market rates and will provide more upside to the new ownership once stabilized at today’s numbers,” Metz said. “These buildings have always commanded top market rents and quality tenants.”