1 Turner Place in Piscataway — Cushman & Wakefield
By Joshua Burd
A joint venture has sold a newly built, 452,000-square-foot industrial building in Piscataway, in a deal arranged by brokers with Cushman & Wakefield.
The real estate services firm on Wednesday said it represented Greek Development and LaSalle Investment Management in the sale of 1 Turner Place, a fully leased property just off Interstate 287. Bentall Kennedy acquired the building on behalf of an institutional investor client, although terms were not undisclosed.
The C&W capital markets team of Gary Gabriel, Andrew Merin, David Bernhaut, Kyle Schmidt and Mark Phillips headed the assignment alongside Adam Spies and two of the firm’s industrial leasing brokers, Jules Nissim and Marc Petrella.
Cascades, which recovers and manufactures green packaging and tissue products, leased the speculative project about halfway through construction, C&W said. The company invested some $80 million on building, infrastructure and manufacturing-related improvements.
“The property offered Cascades a superior building designed by the highly regarded Greek Development, access to heavy rail, high-volume natural gas and labor,” Gabriel said.
The deal is the latest sign of strength for the upper I-287 corridor, which has seen a construction and leasing boom over the past year as an outgrowth of the New Jersey Turnpike. According to C&W, the submarket has vacancy of just 0.7 percent, with 2.25 million square feet in net absorption since January 2017 and 69 percent rent growth since 2014.
The brokerage team said the offering drew strong investor interest, also noting that
Cascades is North America’s sixth-largest producer of containerboard and stands to benefit from the rapid expansion of e-commerce.
“These attributes — along with the long-term commitment and significant investment by such a strong tenant in a high-growth industry — attracted multiple rounds of bidding from institutional investors,” Schmidt said. “Demand for ‘last-mile’ locations continues to spur demand for the region, as a result of its proximity to New Jersey’s roadway network, and access to the New York MSA.”