By Joshua Burd
The Hampshire Cos. has closed on a $300 million recapitalization of a sprawling light industrial portfolio in northern New Jersey and other key areas, in a deal arranged by Newmark.
According to a news release, the collection of 30 buildings spans 1.35 million square feet with an average size of around 45,000 square feet. The portfolio is 92 percent leased and largely concentrated in Fairfield, providing direct access to key highways such as Interstate 80 and Route 46, as well as Little Falls, Elmwood Park and Carteret.
Newmark served as a strategic adviser to Morristown-based Hampshire in the recapitalization of what it calls the Fairfalls Logistics Portfolio, assisting in procuring a joint venture equity partner, with Executive Managing Director Kevin Welsh, Global Head of Industrial and Logistics Jack Fraker and Managing Director Brian Schulz spearheading the deal. Additional terms were not disclosed.
“The Newmark team is proud to have secured the JV partner on behalf of Hampshire to accommodate the recapitalization of its expansive industrial portfolio,” Welsh said. “The new partnership, combined with Hampshire’s decade-long stewardship of the portfolio, will drive near-term value through mark-to-market rental increases and long-term capital appreciation through enhancing the portfolio’s market position.”
In announcing the deal, Newmark said the portfolio provides critical mass and operational efficiency within the regional port-centric market, offering unparalleled accessibility to major Northeast corridors and a broad user base. Other highlights include broad zoning capabilities that support warehousing, manufacturing and light industrial uses, accommodating a diverse range of tenants across various industries and sizes.
Additionally, ownership has invested $14.3 million in upgrades, including new roofs and parking lots, to ensure the properties remain at the forefront of the market.
