698 Route 46 in Teterboro
By Joshua Burd
Investors have stayed bullish on New Jersey’s industrial market, driving more than $900 million in sales volume during the third quarter for warehouse and logistics space in the region.
A recent market report by NAI James E. Hanson tracked $905 million in total activity in northern and central New Jersey, where vacancy is a mere 3.1 percent. That activity was headlined by the $149.1 million sale of a 616,992-square-foot Amazon distribution center at 698 Route 46 in Teterboro, which Goodman North America purchased from TIAA-CREF.
The deal was among several large transactions that closed during Q3, according to NAI Hanson. In Monroe, Zurich Alternative Asset Management LLC acquired 355-375 Davidson Mill Road from The Morris Cos., paying $99.5 million for the 733,678-square-foot warehouse.
The real estate services firm also highlighted a joint venture’s acquisition of a seven-building portfolio in Allendale from High Street Realty Company LLC. The buyers, Camber Real Estate Partners and Advance Realty, purchased the portfolio for $50.5 million.
For the quarter, NAI Hanson said the average price per square foot grew to $116.74, an increase of $18.01 from Q2.
“Capital markets continues to remain fluid and there is ample capital in the market to satisfy investors’ and owners’ needs,” said Greg James, NAI Hanson’s director of capital markets. “Although interest rates have moved higher in the last three months, they are still very attractive from a historical perspective.
“The New Jersey industrial market continues to remain a key area of focus on the part of institutional investors who have been unable to fulfill their capital allocation needs in one of the East Coast’s critical core markets.”
The report detailed several other Q3 industrial sales, including:
- Liberty Property Trust’s purchase of 19 Crows Mill Road, a 348,065-square-foot property in Keasbey, from Lefcourt Associates for $41 million
- Broadstone Net Lease Inc.’s purchase of 536-544 Fayette St., a 260,046-square-foot building in Perth Amboy, from Store Capital Corp. for $38.3 million
- Gramercy Property Trust’s purchase of 560 Jefferson Ave., an 82,000 square foot warehouse, from Marcus Associates LLC for $12.4 million
- Mood Designer Fabrics’ purchase of 39 Robinson Road a 73,373-square-foot building in Lodi, from AEW Capital Management for $7.34 million
