26 Englehard Drive in Monroe — Courtesy: Cushman & Wakefield
By Joshua Burd
The owner of a 324,540-square-foot warehouse in Monroe has sold the property, Cushman & Wakefield announced, in a rare industrial investment sale in the Exit 8A submarket.
The property, 26 Englehard Drive, traded for an undisclosed price. Cushman & Wakefield’s Metropolitan Area Capital Markets Group represented the seller, Principal Real Estate Investors, while identifying the buyer as a Boston-based adviser.
Brokers with Cushman & Wakefield said interest from investors drove the bidding for the property into multiple rounds. One reason was the proximity of a rail line serviced by Conrail.
“There is very strong interest from the institutional community in Exit 8A, and correspondingly a deep investor pool for this property,” Gary Gabriel of Cushman & Wakefield said in a prepared statement. “We had multiple rounds of competitive bidding.”
Gabriel handled the sale with C&W team members David Bernhaut, Andrew Merin, Kyle Schmidt, Brian Whitmer, Jules Nissim and Jason Goldman.
The property has a single tenant with a 10-year lease that includes contractual annual rent steps, the brokerage said in a news release. Schmidt noted that the rent is below current market rates and that net operating income is projected to “increase significantly” over a long-term holding period.
The property, which has 45-foot-by-50-foot column spacing, 170-foot truck courts and 48 loading positions, is three turns and five minutes from the New Jersey Turnpike Exit 8A interchange, the news release said. It also has 13 rail doors and is serviced by Conrail along the Northeast Corridor rail network.
“That is a feature rarely found in the Exit 8A submarket,” Schmidt said, adding: “Very few properties trade within the 8A market, where the availability rate is 2.4 percent. So when a deal does come up, it’s hotly contested.
“This was one of just a few sales that took place there over the past year.”