By Joshua Burd
Real estate investment firm Faropoint has purchased two industrial buildings in Ridgefield, adding nearly 114,000 square feet in a sale-leaseback deal valued at $28.3 million.
According to the company, the properties at 1145 Edgewater Ave. and 1125 Hendricks Causeway are occupied by Biazzo Dairy Products Inc. The privately held producer and distributor of mozzarella, ricotta cheese and other dairy products is now leasing the spaces on a long-term basis from Faropoint, still benefiting from the buildings’ proximity to interstates 95 and 80, the New Jersey Turnpike and other thoroughfares.
“This transaction is an exciting continuation of Faropoint’s core location acquisition strategy, in particular due to its limited term risk, which should translate to superior risk adjusted returns,” said Orry Michael, the firm’s director of acquisitions for greater New York. “With a track record as a well-capitalized firm with a long-term view, Faropoint is competitively positioned to provide liquidity for similar opportunities that, as a result of cyclical fluctuations, other capital sources might not be able to pursue.”
The Hoboken-based firm noted that 1145 Edgewater Ave. totals 57,599 square feet, with 20-foot clear ceiling height and six dock-high loading positions. The building serves as the main processing and production plant and benefits from 15,000 square feet of freezer and cooler space that is used for same-day and overnight storage.
The Hendricks Causeway property spans 56,380 square feet with ceiling heights of nearly 16 feet, while it has five front-loaded dock-high positions for all outbound distribution to the local and regional customer base, according to a news release. Biazzo Dairy has conducted operations at the buildings for more than 30 years.
“Our firm’s established presence in the greater New York and New Jersey metros and our relationships on the ground allowed us to close this deal at a very attractive price point relative to other comparable property sales and land sales in the area,” said Itay Ron, Faropoint’s Northeast region market officer. “Given the infill location and the long-term lease in place, we see this as a defensive acquisition that will still benefit from the secular tailwinds in industrial real estate without the short-term volatility.”
Frank Costa III, Jim Isbell and Brian Sherlock of Viewpoint Advisors represented Faropoint in the deal.
“With the industrial market being the crown jewel for commercial real estate investments, and in concert with the cost of capital, opportunities that make sense are limited and challenging,” said Costa, Viewpoint Advisors’ managing principal. “The compressed due diligence and complex transaction structure of sale-leasebacks means coordination is the key to success. Viewpoint Advisors strategically elected to represent Faropoint upon comprehending the seller’s goals, and it was a pleasure to work with a buyer of their caliber.”
