Allendale Shallow-Bay Industrial Park at 1, 3, 5, 6 and 7 Pearl Court and 59 Route 17 in Allendale — Courtesy: Cushman & Wakefield
(Editor’s note: This story was updated Thursday, Oct. 19, with additional information from Faropoint, the buyer in the transaction.)
By Joshua Burd
Camber Real Estate Partners and Advance Realty Investors have sold more than 770,000 square feet of industrial space in Bergen County, brokers with Cushman & Wakefield announced.
The buyer, Faropoint, said it paid a combined $144.5 million for the portfolios, which include a seven-building, 370,064-square-foot campus in Allendale and three buildings totaling 399,999 square feet in Mahwah. Both complexes are adjacent to Route 17, C&W said, adding that they were 100 percent and 91 percent occupied at the time of the sale, respectively.
Cushman’s Gary Gabriel, Kyle Schmidt, Ryan Larkin and Seth Zuidema represented the sellers and procured the buyer.
“This assemblage of properties in Allendale and Mahwah complement each other with varying unit sizes, loading and overall functionality, allowing ownership to attract a wide variety of user types,” Schmidt said. “The success of both portfolios is evidenced by record rental rates and leasing velocity year to date. Camber Real Estate Partners has done an exceptional job managing and maintaining both portfolios since their initial acquisition in 2018 and 2019, respectively.”
In a news release, C&W noted that the Allendale Shallow-Bay Industrial Park consists of buildings at 1, 3, 5, 6 and 7 Pearl Court and 59 Route 17. The 35.1-acre campus is home to 19 tenants and 985 total parking spaces, with buildings that are highly divisible and feature individual storefronts and dedicated dock-high loading for each unit.
The portfolio’s location on Route 17 provides immediate access to a dense retail corridor, affluent demographics and roadways including interstates 287 and 80, the New York State Thruway and Route 4.
“This acquisition further strengthens Faropoint’s growing market share within the Bergen County industrial market,” Gabriel said. “Over the last few years, Faropoint has proven the ability to execute on complex large-scale transactions which have added to the success of their northern New Jersey portfolio. Their strategy, discipline and data-driven approach was evidenced throughout this accelerated transaction process.”
The Mahwah Industrial Center spans 33.21 acres and includes 16, 70-82 and 91-97 McKee Drive, C&W said. It had seven tenants at the time of closing, offering unit size flexibility and functionality, 23 drive-ins and 16-foot clear ceiling heights, as well as abundant parking with 1,463 spaces.
“Our team remains steadfast in its commitment to identifying compelling opportunities within the light industrial and shallow bay sector, strategically positioned within high barriers-to-entry pockets across the broader market such as northern Bergen,” said Orry Michael, Faropoint’s director of acquisitions for greater New York. “Our capacity to execute seamlessly and deliver exceptional results to our investment partners is anchored in our hyper-focus on data analytics. This localized model offers us unparalleled access to on-the-ground insights, market intelligence and a deep understanding of local dynamics.
“By staying firmly connected with the pulse of the local communities in which we operate, we’re able to identify opportunities as they emerge, remain agile in our decision-making and swiftly respond to market fluctuations.”
In a separate news release, Faropoint noted that it entered the northern New Jersey market with its first transaction in winter 2021. Since then, the firm has deployed roughly $300 million in capital across the region.
“Faropoint’s relationship-centric strategy, reliable funding and use of proprietary data and technology is what allows our investment teams to transact with accuracy and certainty when vetting and underwriting potential deals,” said Adir Levitas, the firm’s CEO and founder. “The urban infill industrial product we specialize in has gained popularity in recent years due to the sector’s incredibly strong fundamentals, and we look forward to continuing to pursue similar opportunities in supply-constrained markets across the country in the years to come.”
Faropoint’s U.S. team is based in Hoboken.
“The fact that both facilities are 100 percent leased to reputable, credit-worthy tenants offers an opportunity to generate sustainable long-term returns, aligning perfectly with our investment strategy which emphasizes growth and stability at an irreplaceable basis,” said Itay Ron, the firm’s Northeast market officer. “These industrial parks offer a unique combination of flexible warehouse space in a central location that serves a range of high value tenants in the northern New Jersey region. We look forward to continuing to strengthen our relationship with the owners and operators who serve this region in the future.”
