3140 Route 22 in Branchburg — Courtesy: Cushman & Wakefield
By Joshua Burd
Investment firm Faropoint has purchased a 151,000-square-foot industrial building in Branchburg for nearly $24 million, in a deal arranged by Cushman & Wakefield.
The brokerage team, which represented the seller, said the deal at 3140 Route 22 is among more than 400 acquisitions that Faropoint has completed to date. The single-tenant property offered what the private equity firm described as significant in-place yield and a low basis, along with proximity to interstates 287, 78 and 80 and Route 22.
“Local demographics are also extremely favorable, with several Fortune 500 businesses and pharmaceutical companies headquartered within the immediate vicinity,” said Orry Michael, Faropoint’s director of acquisitions for greater New York. “Most importantly, the asset serves as Marcolin USA’s North American headquarters and sole distribution facility, which in turn, allows for a long-term commitment to both the tenant and the asset. With this acquisition, we look forward to marking the firm’s continued expansion across micro locations in central New Jersey and are grateful to the Cushman & Wakefield team for their professionalism, expertise in the market and seamless execution of the deal from start to finish.”
Cushman’s Gary Gabriel, Kyle Schmidt, Andrew Schwartz, Jordan Sobel, Ryan Larkin and Andre Balthazard represented Viva Branchburg LLC in the $23.75 million trade, having also procured the buyer.
“The property is ideally situated in the Interstate 78 corridor submarket and benefits from direct access to New York City,” Schwartz said. “As a single-tenant industrial building, the asset offers a predictable income stream from a long-term, strong credit tenant.”
In a news release, the team said 3140 Route 22 sits on 13.38 acres and has seven loading docks, one drive-in door and 18-foot ceiling heights.
“The bid-ask spread between buyers and sellers together with turbulent capital markets have made identifying deals with strong return metrics increasingly difficult,” said Itay Ron, Faropoint’s senior vice president of Northeast markets. “Faropoint’s established presence in the Greater New York metro area, along with our relationships on the ground and transactional certainty enabled our team to close this deal at a very attractive price per square foot relative to other comparable property sales and land sales in the area. We look forward to continue expanding our presence regionally.”
