A rendering of Crow Holdings at Veronica Ave in Franklin Township — Courtesy: Crow Holdings Industrial
By Joshua Burd
Crow Holdings Industrial has inked a 925,000-square-foot lease in Franklin Township with LG Electronics USA, landing a high-profile tenant at its first New Jersey warehouse project.
The developer, which entered New Jersey in mid-2018, announced Tuesday that the electronics giant has signed a seven-year, full-building commitment for its soon-to-be-completed facility on Veronica Avenue. LG is slated to occupy the space, which Crow Holdings owns in partnership with funds affiliated with The Carlyle Group, in the first quarter of 2020.
Cushman & Wakefield Vice Chairman Stan Danzig and Associate Kimberly Bach represented ownership, while C&W Executive Managing Director James Frank and Vice Chairman Jules J. Nissim represented LG.
“With the rapid growth of e-commerce and the overall strength of the economy, demand for industrial space is at record levels, and there are very few spec buildings of this size being built in Central Jersey,” said Clark Machemer, a senior managing director with Crow Holdings Industrial. “While we were in contact with a number of interested tenants, LG was drawn to the building’s large footprint and Crow Holding Industrial’s status as a premier developer.
“We’re proud to help bring such a well-regarded tenant to Franklin Township, and we look forward to replicating this strategy at our other Northeast developments in the years ahead.”
The deal comes just months after the developer broke ground on what it calls Crow Holdings at Veronica Ave. The privately held, Dallas-based firm also touted the transaction as an immediate validation of its Northeast expansion strategy, which began in mid-2018 with the hire of Machemer as its lead executive in the region.
Crow Holdings Industrial and The Carlyle Group acquired the Veronica Avenue property in early 2019 from Efrem Gerszberg of 2020 Acquisitions, giving way to a spring groundbreaking for the speculative development. What’s more, the firm already boasts 5 million-square-foot development pipeline less than 18 months after commencing regional operations.
“Franklin Township is excited to welcome LG to our community,” Mayor Philip Kramer said. “We believe in the positive benefits of economic growth and appreciate the investment Crow Holdings has made in our township. We look forward to LG bringing jobs to Franklin and the opening of the facility in the beginning of 2020.”
With proximity to mass transit, the New Jersey Turnpike and Interstate 287, the complex will include large translucent windows that allow natural light and LED lights that create an open and bright working environment, according to a news release. The building will have 40-foot clear heights and will include 170 trailer parking spots, 159 dock positions, four drive-in ramps and doors and 394 car spaces.
“While industrial demand is at near-record levels, supply is currently lagging because of the challenges developers face in procuring suitable land,” Danzig said. “Crow’s impressive ability to identify this well-situated property and move quickly on acquisition and development will bring nearly 1 million square feet of much-needed industrial space to Central Jersey. We canvassed the market broadly and spoke with dozens of interested occupiers, before ultimately locking in a seven-year lease with LG.”