JLL’s New Jersey capital markets team has brokered the sale of a 10-building, 654,633-square-foot light industrial portfolio in northern New Jersey, which includes four buildings in Whippany. — Courtesy: JLL
By Joshua Burd
A fast-growing investment firm has planted a flag in northern New Jersey, acquiring a 10-building industrial portfolio in Bergen and Morris counties for nearly $133 million.
Faropoint, which purchased the assets from Kushner Cos., said the properties span a combined 654,633 square feet and are home to a mix of national and local tenants in industries such as health care, biotechnology, distribution and community service providers. The 98 percent leased portfolio includes:
- 125, 145 and 156 Algonquin Parkway and 30 Leslie Court in Whippany
- 17-01 Pollitt Drive and 19-05 Nevins Road in Fair Lawn
- 95 and 128 Bauer Drive, 40 Potash Road and 5 Thorton Road in Oakland
The properties are also accessible from key highways such as interstates 80, 280, 287 and 95.
“This acquisition is strategically important for Faropoint due to the portfolio’s proximity to the high barrier-to-entry, densely populated New York metro submarket,” said Ohad Porat, chief investment officer at Faropoint. “We remain one of the most active investors in the industrial sector, and as we continue to expand geographically up the East Coast and across the nation, we are hyper-focused on investment opportunities in the New Jersey and New York metropolitan area.”
JLL Senior Managing Director Jose Cruz, managing directors Marc Duval and Michael Oliver, Senior Director Jordan Avanzato and Director Nick Stefans represented the seller.
“Working with Faropoint was a pleasure and incredibly efficient,” Duval said. “We were impressed with Faropoint’s execution capabilities and the speed at which they operate, which enabled the transaction to close within 39 days. We look forward to continuing to collaborate with Faropoint as they move forward with their ambitious national expansion strategy.”
Faropoint, which maintains its U.S. headquarters in Hoboken, has offices in eight key cities across the country, the firm said. In 2021 alone, the company has acquired 148 buildings totaling nearly 9 million square feet in 85 separate transactions.
Its recent acquisitions include seven light industrial buildings in Camden County, which comprise 304,077 square feet. The firm announced the nearly $30 million purchase early this year.
Faropoint is now slated to upgrade each of its newly acquired buildings by repainting them, installing new LED lighting and other sustainable features and replacing the roofs.
“The portfolio’s flexible design is ideally suited to accommodate a wide array of distribution and light industrial users in an area of northern New Jersey where demand continues to outpace supply,” said Vadim Greenberg, head of acquisitions at Faropoint. “Faropoint has been watching and analyzing the northern New Jersey industrial market for quite some time, and we believe that this market is well-positioned to capture future growth as some of the core locations in the New York metro area have experienced unprecedented rent growth during the last 12 months.”