By Joshua Burd
Duke Realty has announced its purchase of a 53-acre site in Newark, providing it with a coveted outdoor storage lot and a future redevelopment opportunity.
Currently leased to an outdoor storage provider, the parcel at 740-768 Doremus Ave. is less than a mile from Port Newark-Elizabeth and the New Jersey Turnpike, according to a news release. The real estate investment trust acquired the property from an unnamed seller, which was represented by Cushman & Wakefield’s Chuck Fern, Stephen Shoemaker, Gary Gabriel and Kyle Schmidt.
Terms were not disclosed.
“The acquisition of the Doremus Avenue site is consistent with our strategy of focusing on high-barrier tier 1 markets,” said Mark Crawford, senior vice president and head of acquisitions for Duke Realty. “This purchase gives us an exceptionally located piece of land in a market where demand for industrial properties such as warehouses and outdoor storage space is extremely high, but sites are scarce.”
Duke said that, upon expiration of the lease, it has the option of continuing to use it for port-related goods storage or redeveloping it by adding warehouses or a truck terminal. The site is accessible from Delancy Street and has overweight container road access.
“Since entering the New Jersey market eight years ago, we have grown our portfolio to nearly 8.1 million square feet using a combination of new development and acquisitions,” said Art Makris, senior vice president of Duke Realty’s east region. “With the Doremus acquisition, Duke Realty has added another well-located property to its portfolio with the potential to provide strong rent growth and solid value for our stockholders.”