651 Michigan Ave. in Kenilworth — Courtesy: NAI DiLeo-Bram & Co.
By Joshua Burd
An industrial user has sold and leased back a portion of a nearly 27,000-square-foot facility in Kenilworth, reaping more than $13 million in a deal arranged by NAI DiLeo-Bram & Co.
According to a news release, the transaction comes less than two years after Magni America completed the modern warehouse and office facility at 651 Michigan Ave. and just south of Route 22. NAIDB Vice President Richard Goski and Associate Vice President Catherine Goski-Vasquez represented the firm in both its initial land acquisition for project, which required it to raze an existing structure, and its sale of the new 26,500-square-foot building to Ridgecut Road.
According to Goski, the supplier of material handling equipment opted to sell after recognizing the intense submarket demand for high-end industrial space and chose to use other owned sites for its storage needs. That prompted Magni to instead seek a sale-leaseback, for which it re-engaged Goski and Goski-Vasquez.
“Kenilworth remains a strong industrial submarket in Union County, and this facility is a great example of a well-located, highly functional flex asset,” Goski-Vasquez said. “What truly distinguishes this property, however, is its distinct design — the interior features ultra-modern architectural elements and curated furnishings that elevates it from a ‘standard’ environment into a sophisticated, high-end professional space.”
As NAIDB marketed the property, the high-end nature of the newly completed facility also sparked competitive, off-market sales inquiries, the news release said. As a result, NAIDB vice presidents Kyle Gerace and Christopher Chiusolo generated a winning offer from a buyer expanding its regional logistics and low-coverage industrial portfolio.
Magni ultimately accepted the $13.125 million offer and remains in place as the tenant for a portion of the facility, according to NAIDB.
“This property checked a number of key boxes for the buyer, especially in terms of location and scale,” Gerace said. “It represents a strong addition to their portfolio and shows the continued appetite for high-quality Class A industrial outdoor storage facilities in the Union County submarket.”
The brokers announced the deal while noting that the 2.02-acre site, located within 10 miles of the Goethals Bridge and Newark Liberty International Airport, provides immediate access to a dense consumer base and key regional transport nodes such as Interstate 78, the Garden State Parkway and the New Jersey Turnpike. Features at 651 Michigan Ave. include two levels of office space totaling 10,000 square feet and a 16,000-square-foot warehouse with 35-foot clear ceiling heights, as well as five drive-in doors and a 10-ton crane, providing the specialized utility required by modern distribution and light manufacturing users.
