By Joshua Burd
A private equity firm is announcing a new investment in a three-building light industrial portfolio that’s now under construction in central New Jersey.
Amalfi Capital, which is based in the Wickatunk section of Marlboro, said the projects will bring a combined 173,763 square feet to Freehold, Robbinsville and Hamilton. The firm is banking on the lack of supply and the continued need for high-end, small bay space in a top U.S. industrial market, fueling its investment with Red Bank-based Denholtz Properties, the sponsor and developer.
Additional terms were not disclosed.
“We are super excited to invest in our own backyard in what has become a very in demand warehouse flex space product,” said Mike Schnurr, Amalfi’s managing partner. “Together with a developer that is also based in New Jersey and who is a vertically integrated firm that handles all aspects of the build process. They have 70-plus years of experience in bringing these types of properties to market and we couldn’t have chosen a better partner.”
In announcing the deal, the firm said high-end, small bay industrial space captures premium rental rates and witnesses significant leasing velocity. Current inventory in the submarket is 37 years old on average, with low clear heights, while the average delivery in the past five years has been larger than 250,000 square feet and designed for a single tenant.
