153 Bauer Drive in Oakland — Courtesy: CBRE
By Joshua Burd
Investment firm Faropoint has acquired a nearly 45,000-square-foot industrial building in the Bergen County borough of Oakland, in a newly announced deal by CBRE.
According to the brokerage team, Oakland Management sold the property at 153 Bauer Drive for $9.6 million. The Hoboken-based buyer now plans to hold the fully leased, 44,300-square-foot building as an investment.
“The sale of this property represents one of the numerous industrial transactions our team has completed in New Jersey in just the past few months, demonstrating again the industrial market’s dominance in New Jersey,” CBRE’s Jeremy Wernick said. “Across the region, and particularly in today’s tumultuous market, industrial properties are highly coveted due to the continuing supply chain shortages and need for warehouse and distribution centers.”
The CBRE team on the assignment included Elli Klapper, Wernick, Mark Silverman and Charles Berger, who represented Faropoint in conjunction with fellow brokers Mark Trevisan, Kevin Dudley, Nick Klacik and Chad Hillyer.
“More than ever, investors recognize the crucial need for these types of properties, both existing and new construction,” Klapper said. “There has been a paradigm shift in the market as investors and developers see the long-term value of industrial commodities such as this, with excellent proximity to both vehicular transportation veins and major ports, and they are looking to expand their portfolios for long-term stability and future growth.”
In announcing the deal, CBRE said 153 Bauer Drive is minutes from Interstate 287, which provides direct access to major thoroughfares throughout New Jersey and New York and to the strongest consumer markets in the Northeast.
“This was a strategic acquisition made by our team to expand our presence in northern New Jersey where we already have considerable holdings,” said Orry Michael, Faropoint’s director of acquisitions in the Northeast. “High barriers to entry continue to stifle Class A development in the Northwest Bergen submarket due to constraints for readily available land zoned for industrial use. The area is experiencing surging demand and significant rental rate growth as tenants search for high-quality, functional product. We anticipate market fundamentals will remain strong, despite some of the volatility seen in other segments of the market.”