Page 6 - RE-NJ

4 MAY 2022
THE BRIEFING
NEWARK WAREHOUSE SELLS FOR RECORD $826 PER SQUARE FOOT
state of New Jersey. We appreciate the whole team effort, including the brokerage team, to bring this one together.”
Hekemian noted that 120 Frontage, which sits on
The S. Hekemian Group ultimately delivered a building that was slated to include 36-foot clear ceiling heights, 19 loading dock doors and parking for 46 cars.
“It’s a gem and we saw that from
day one,” Hekemian added. “It was that locational story, and the clean development concept (and) execution that drove the tenant demand for the use of the building, which allowed us to surpass the previous record rent in New Jersey by 40 percent, and then allowed us to do the same on the sale exit with a super competitive bidding process.”
Cruz, Duval and Avanzato also brokered the sale of the development site to Hekemian’s firm in 2018.
The S. Hekemian Group has sold
a newly built, 76,000-square-foot industrial building just north of Interstate 78 in Newark, achieving a record price of more than $820 per square foot.
Located at 120 Frontage Road, the warehouse is also minutes from the vast network of highways
that surround Newark Liberty International Airport, which sits directly to the
south. That
access helped
fuel intense
interest from
tenants as the
developer built
the facility,
driving record
rents for New
Jersey industrial space and the reported $62.75 million sale price.
LBA Realty purchased the facility, according to market reports, in a deal brokered by JLL’s Jose Cruz, Marc Duval, Jordan Avanzato and Nicholas Stefans. Alliance Ground International, a cargo handling services provider, leases the entire building for use as an off-airport air cargo facility.
“Our intent was always to hold this one generationally, but
given the value creation
that we brought together
Peter Hekemian
4.5 acres, was the company’s first industrial project. The
firm purchased the parcel in
fall 2018 after being attracted to a location that
Jose Cruz
by developing the site,
it just made no sense to hold,” Peter Hekemian, senior managing director with The S. Hekemian Group, wrote in an email. “It was really
just a special deal to be involved in, a lot of fun, which you can’t often say as a developer in the
120 Frontage Road in Newark
“always seemed perfectly logical to me,” he said, pointing to “the planes that literally fly over your head when you’re on site.”
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Courtesy: The S. Hekemian Group