A project led by the former Altman Logistics Properties and now FRP Holdings Inc. will bring 140,000 square feet of new industrial space to a former obsolete office property at 30 and 20 Lanidex Plaza West in Parsippany. — Rendering courtesy: FRP
By Joshua Burd
Development firm FRP Holdings Inc. has acquired interests in two New Jersey industrial projects as part of a larger deal for what’s known as Altman Logistics Properties LLC.
According to the firms, the portfolio includes the planned 140,031-square-foot warehouse at 30 and 20 Lanidex Plaza West in Parsippany that Altman announced last year. Also included is a project that will bring a 170,800-square-foot facility to the junction of Interstate 195 and Route 130 in Hamilton.
FRP announced the acquisition this week, touting it as a move to expand its development pipeline by some 1.28 million square feet across New Jersey and Florida.
“In an uncertain cap rate and interest rate environment, both talent and superior execution are going to be the true differentiators among developers and operators,” FRP Holdings CEO John D. Baker III said. “The ability to identify and leverage relationships and execute our business plan, which includes delivering quality assets under budget with high-quality tenancy, will be the only sure way to create value.
“We know from working with Altman Logistics Properties how special their team is, and it is exciting to think about what we will be able to accomplish with a deeper bench and broader market focus.”
The transaction calls for fully integrating Altman Logistics Properties’ active logistics and warehouse development portfolio into FRP’s platform, according to a news release. That also includes a combined 384,193 square feet across two projects in Florida’s Tampa and Orlando regions and a three-phase, 592,452-square-foot development in Delray Beach.
Arnold & Porter Kaye Scholer LLP advised FRP in the transaction. Financial terms were not disclosed.
“Acquiring all of Altman Logistics Properties business operations allows FRP to strengthen our presence in high-barrier-to-entry real estate markets and significantly grow our industrial real estate business, making the move a significant investment in the company’s growth,” said David H. deVilliers III, president and chief operating officer of FRP Holdings. “Not only does this acquisition expand our industrial footprint and reach in critical industrial markets in New Jersey and Florida but adds an experienced team of real estate professionals who will enhance our capabilities and contribute to the growth of our industrial real estate business.”
Altman Logistics Properties’ professionals, led by former President Mark Levy, will join FRP as part of this transaction.
“Given our existing joint venture relationship with FRP with respect to two projects in Southern and Central Florida, the sale of Altman Logistics Properties’ business operations to FRP represents a highly strategic progression of our partnership,” said Levy, who assumes the post of chief investment officer. “Given FRP’s demonstrated track record in the industrial sector, we are well-positioned to achieve greater scale, operational depth and sustained growth along the eastern seaboard.”
Developers land $22 million construction loan for 140,000 sq. ft. Parsippany warehouse project
