The Allendale Industrial Park in Allendale — Courtesy: Cushman & Wakefield
By Joshua Burd
Camber Real Estate Partners and Advance Realty have added to their portfolio of light industrial buildings, acquiring a 370,000-square-foot campus off Route 17 in Bergen County.
The joint venture said this week that it closed on the seven-building complex in Allendale, touting its infill, supply-constrained location and easy access to the Garden State Parkway and Interstate 287. Cushman & Wakefield, which brokered the sale, announced separately that the campus traded for $50.5 million.
The complex on Pearl Court and Route 17 South is more than 90 percent leased to tenants including Stryker and Volkswagen, according to a news release. Camber and Advance now plan to enhance property operations and make select capital improvements in order to create a better tenant experience.
“The confluence of the quality and functionality of these improvements, the tremendous highway access to serve local and regional users and the high barrier-to-entry infill location are a few of the attributes that drew us to this investment,” said Dave C. Surti, principal of Camber Real Estate Partners.
The C&W team of Gary Gabriel, Kyle Schmidt, Andrew MacDonald, Andrew Merin, David Bernhaut and Brian Whitmer represented the seller, High Street Realty Co. LLC. Andrew Siemsen from the real estate services firm was involved on the leasing side, while John Alascio, Sridhar Vankayala and Noble Carpenter from C&W’s equity, debt and structured finance team arranged acquisition financing.
Camber Real Estate Partners and Advance said the seven buildings were developed to an institutional standard between 1977 and 1980, with all units featuring individual entrances and dedicated loading. Ceiling heights range from 20 to 24 feet, while the buildings offer flexible configurations for manufacturing, distribution, office and research laboratory uses.
“We are excited to grow our partnership with Camber on another excellent investment opportunity,” said Alexander Cocoziello, principal and managing director of Advance Realty. “It is rare that a portfolio such as this one becomes available in sought-after Northern Bergen County, and we plan to hold it as a long-term investment.”
The deal represents the latest joint venture between Camber Real Estate Partners and Advance. Last fall, the firms acquired a 529,110-square-foot industrial and office complex in the Pine Brook section of Montville, with plans to reposition the campus to tap into the continued demand for warehouse and distribution space.
Camber Real Estate Partners has now acquired 12 buildings totaling about 1.2 million square feet since its founding in 2016.
“This portfolio fits well with our investment strategy,” said Christopher M. Bellapianta, managing principal of Camber Real Estate Partners. “These assets are irreplaceable and sit in one of the most desirable regional locations in the United States. We expect the supply and demand characteristics to yield durable cash flow over the life of our investment.”
C&W said the property drew robust interest from private investors and institutions.
“Investment opportunities such as this rarely come along in Bergen County,” Gabriel said. “The property’s appeal was enhanced by its consistently high occupancy and the presence of tenants such as Stryker and Volkswagen, which represent (47 percent) of the rentable area and have been in the park for an average of 24 years.
“Historically, Allendale Industrial Park has been institutionally owned and has enjoyed an exceptionally high tenant retention rate and occupancy.”
Citizens Bank of Pennsylvania provided $34.5 million in acquisition financing, C&W said. Ed Terry, senior vice president and regional commercial real estate executive at Citizens, originated the loan with a team that included vice president and commercial real estate portfolio manager Paul Carlson.