Page 6 - RENJ Sept.21

4 SEPTEMBER 2021
THE BRIEFING
SOUTH JERSEY INDUSTRIAL BUILDINGS SOLD FOR $107 MILLION
for CRG. “The facilities’ last-mile accessibility to Philadelphia and major freeways gave us a strategic position in the market. As major e-commerce users and logistics users continue to prioritize the southern New Jersey industrial markets, CRG will continue to establish its footprint here to meet those needs.”
JLL Senior Managing Director John Plower, Director Ryan Cottone and Analyst Zach Maguire led the capital markets team representing the sellers, working alongside Vice Chairman Paul Torosian, Managing Director Dean Torosian and Executive Managing Director Nate Demetsky. Watson Land, which is based in Carson, California, paid $107.74 million.
“We saw a tremendous amount of investor interest in this offering due
to the high quality of construction,
infill location and the in-place cash
flow that both leases provide,” Plower said. “Southern New Jersey is a great distribution location, as it provides easy access locally and regionally along I-295 and the New Jersey Turnpike and is just across the river from Philadelphia’s massive population center.”
CRG developed the properties
under The Cubes brand — which prioritizes markets with access to major population centers, key logistics corridors and strong local workforces — in a joint venture partnership
with Pacific Coast Capital Partners
to ensure we are best meeting the needs of our business, customers
and clients,” the company said in a prepared statement. “As a result of our ongoing analysis, we are securing new office space in Morris Plains that offers the accessibility, flexibility and conveniences that suits the needs of our employees. Most of the Evernorth employees that currently work at our Franklin Lakes site, which has been listed for sale, will eventually relocate to our new Morris Plains office.”
Located off Route 202 and minutes from downtown Morristown, 115 Tabor Road had served as Honeywell’s headquarters since 2015, following a high-profile move from nearby Morris Township. The technology giant at
the time had considered a move to Pennsylvania, but opted to stay after Gov. Chris Christie famously stepped in and secured a $40 million tax credit to keep the company in New Jersey.
After moving in, Honeywell announced in late 2018 that it was relocating
its headquarters to Charlotte, North Carolina, though it pledged to keep
LLC. Lamar Johnson Collaborative designed the buildings, while CRG parent company Clayco managed construction.
Both warehouses feature 36-foot clear ceiling heights and early suppression fast response fire sprinkler systems, according to a news release. The Cubes at Huff Lane features 43 loading doors, 187 parking spaces and 60 trailer stalls, while The Cubes at Harmony Road includes 38 loading doors, 208 parking spaces and 79 trailer stalls.
Both are fully leased, thanks in part
to their location adjacent to Interstate 295, less than a half-mile from the New Jersey Turnpike and less than 20 miles from Interstate 95.
“This is the strongest industrial market of our lifetimes and today’s users require best-in-class, next generation facilities to keep pace with that demand,” said Shawn Clark, president of CRG. “That’s the standard we put into each of The Cubes, including these two in East Greenwich. We bring these buildings to life with the most vertically integrated development and investment platform in the country, and each successful sale helps us prove that.”
CRG also noted that, since 2018, it has broken ground on some 18 million square feet of projects nationwide under The Cubes brand, more than 10 million square feet of which has already been delivered.
some 800 employees in Morris Plains. Argent Ventures acquired the property late last year as part of a sale and partial leaseback with the Fortune 100 company, subsequently rebranding the campus as The Crossing at Tabor Road.
A CBRE brokerage team including Sean Morley, Edward DaCosta and EJ DaCosta said earlier this year that they were marketing some 250,000 square feet of furnished space at the property, which is home to a high-end fitness center with a yoga studio, multi-room conference centers with town hall seating for 400 guests, a café and bocce and basketball courts, among other amenities. The property also includes parking for more than 1,000 cars.
For Cigna, the site will include a mix of on-site, flex and work-from-home employees. As the future home of Evernorth, a health services business, the team in Morris Plains will also include the Express Scripts brand.
Carl Eriksen, also of CBRE, reportedly represented the tenant in the deal.
A developer has reaped more than $107 million from its sale of two newly built industrial properties in southern New Jersey, in a deal arranged by brokers with JLL.
CRG, the real estate development
and investment arm of Chicago-based Clayco, completed the transaction in East Greenwich less than a year after delivering the buildings at 100 Huff Lane and 191 Harmony Road. Watson Land Co. purchased the fully leased assets, both of which are within the East Greenwich Logistics Center about
20 miles southwest of Philadelphia.
The properties are 283,040 and 252,750 square feet, respectively.
“Each of these buildings was a major success for
our clients and
capital partners,”
CRG has sold two East Greenwich industrial buildings developed under its brand known as The Cubes, as depicted in this rendering, which prioritizes markets with access to major population centers, key logistics corridors and strong local workforces.
CIGNA LEASING 200,000 SQ. FT. AT EX- HONEYWELL SITE IN MORRIS PLAINS
said Frank Petkunas, senior vice president, partner and Northeast industrial leader
Frank Petkunas
A global health services company
is taking down a major piece of the former Honeywell International campus in Morris Plains, where it will reportedly lease some 200,000 square feet.
Cigna Corp., which is based in Bloomfield, Connecticut, will move roughly 2,100 employees to the property at 115 Tabor Road, most of whom will come from an office
in Bergen County that is home to its Evernorth subsidiary. The transaction will backfill nearly half of the 465,000-square-foot property, which Manhattan-based Argent Ventures LLC acquired late last year.
A Cigna representative confirmed some details of the move, which was first reported on Aug. 26 by ROI-NJ.
“We continually assess our operations
115 Tabor Road in Morris Plains
Courtesy: CBRE Courtesy: CRG