601 Delran Parkway in Delran — Courtesy: Endurance Real Estate Group LLC
By Joshua Burd
A joint venture has sold more than 340,000 square feet of industrial space in Delran and Swedesboro after having acquired the buildings at the start of the COVID-19 crisis.
The sellers, an affiliate of Endurance Real Estate Group LLC and PCCP LLC, say the five-building portfolio was 100 percent leased at closing, reflecting their move to reposition the assets over the last three years. The properties include 601 Delran Parkway in Delran, where the firms completed a full-building lease soon after their purchase in April 2020, as well as 600 Delran Parkway and three Swedesboro properties at 603 and 614 Heron Drive and 1 Killdeer Court.
CBRE’s Michael Hines, Brad Ruppel, Joe Hill, Lauren Dawicki, Dan McGovern and Charlotte Sands brokered the sale to an undisclosed global private equity real estate firm. Terms were not disclosed.
“We are excited to announce the successful sale of our five-building portfolio in Delran and Swedesboro,” said Benjamin Cohen, president of Endurance. “I think this transaction is a testament to the dedication and collaboration of our team, particularly in light of the challenging circumstances surrounding the acquisition in April 2020, at the onset of the global pandemic. We believe this sale reaffirms our investment philosophy of buying well located functional light industrial across the Mid-Atlantic.”
According to the firm, the 342,098-square-foot portfolio includes buildings constructed in the 1970s and 1980s and with an average of 22-foot clear ceiling heights, wet sprinkler systems and ample loading capacity with full dock packages. Users at all five buildings have easy access to Interstate 295 and the New Jersey Turnpike.
Endurance and PCCP acquired the properties in 2020 as part of a larger portfolio that included two additional buildings, in a $42.925 million deal that was also brokered by CBRE. The firms noted on Wednesday that the New Jersey Board of Public Utilities chose the buildings to participate in the Community Solar Pilot Program, enabling Endurance to provide clean, renewable power to 147 homes, 51 percent of which are low- to moderate-income households.
They also spent the next three years filling the buildings through a flurry of leasing activity. That included the full-building deal at 601 Delran.
“This enabled us to focus on the balance of the leased portfolio as 70 percent of the existing tenants were scheduled to roll within the first three years of our hold period,” said Albert J. Corr, senior vice president and principal of Endurance. “We ended up completing 21 lease transactions during our ownership period, which was a combination of new deals, expansions, relocations and renewals.”