The Fairfield Business Center off Route 46 in Fairfield — Courtesy: Cushman & Wakefield
By Joshua Burd
A seven-building industrial and flex complex in Fairfield has changed hands for $30 million, in a transaction arranged by brokers with Cushman & Wakefield.
The firm on Thursday said it represented Denholtz Associates in its sale of the Fairfield Business Center, a 336,220-square-foot property just off Route 46. The firm also procured the buyer, Weiss Realty, which takes over a complex that was 88 percent leased to 61 tenants at the time of the sale.
The Cushman & Wakefield investment sales team included Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Kyle Schmidt and Kubby Tischler.
“The e-commerce boom continues to fuel demand for warehousing and flex space,” said Bernhaut, an executive vice chairman with the firm. “To ensure easy access to the massive consumer market around the New York metro area and the inland distribution markets, logistics and last-mile delivery companies are leasing an increasing amount of industrial and flex space in the Northern New Jersey industrial market.”
The brokers and Denholtz touted the appeal of the suburban Essex industrial submarket, which offers quick access to interstates 80 and 280 and Route 23.
“As owners of the Fairfield Business Center since 1999, we recognized that today’s strong demand for industrial space in the Suburban Essex submarket and high occupancy at the portfolio made this an ideal time to sell this asset to deliver substantial returns back to our investors,” said Stephen Cassidy, president of Denholtz Associates. “We thank the Cushman & Wakefield capital markets for their hard work in marketing the property and securing a buyer.”
The sale of the nearly 17-acre property is the latest sign of growing interest in Fairfield, as investors and tenants look for new opportunities beyond the New Jersey Turnpike corridor. In announcing the sale, C&W also touted the location’s access to a deep and diverse workforce.
“Fairfield Business Center occupies a unique highway location with excellent access to major business centers,” said Merin, a vice chairman with the firm. “Fairfield Business Center also has a strong history of tenant retention. Demand for industrial and flex space is growing across the nation and in northern New Jersey’s Route 46 corridor in particular, allowing the purchaser to benefit from continued low vacancies and high rental rates.”
Schmidt, a managing director with C&W, said the deal “generated significant investor interest,” which was enhanced by the presence of multiple buildings that can be divided for smaller users. He also pointed to the highway frontage, which has attracted commercial users such as a sports equipment retailer, rock-climbing, Crossfit and medical tenants.