An affiliate of Paul V. Profeta & Associates Inc. joined executives from a major consumer goods company on May 28 to mark the start of construction for a 300,000-square-foot expansion of an existing 400,000 square-foot industrial facility in the Southeast. — Courtesy: Paul V. Profeta & Associates
(Editor’s note: Paul V. Profeta is the publisher of Real Estate NJ)
By Joshua Burd
An affiliate of Paul V. Profeta & Associates Inc. has broken ground on a project that will add nearly 300,000 square feet to a major industrial facility it already owns in the Southeast.
The undisclosed tenant, a Fortune 500 company with investment-grade credit, currently occupies some 400,000 square feet at the property and will soon expand under a newly signed, 25-year lease. The absolute triple-net, bondable lease comes seven years after the Profeta affiliate acquired the property as part of a 1031 like-kind exchange, using the proceeds from the sale of a large industrial development parcel in New Jersey’s Somerset County.
The Roseland-based developer and real estate investor noted that, on a tour of the building he conducted shortly after his purchase, it became clear that the tenant had an urgent need to expand. Construction is now underway after a May 28 groundbreaking that drew an executive vice president, a senior vice president and a vice president from the tenant company, a household name in consumer goods.
“Given the fact that this warehouse will now be one of the largest in the U.S. system for this company, I have been able to deal with the president, executive vice president and vice president of the logistics division,” said Paul Profeta, founder and president of Paul V. Profeta & Associates. “They have been a delight, and we have created a warm, mutually trusting relationship.”
The landlord, which will receive an annual 3 percent increase in the new lease, is currently a preferred builder for Amazon and is now a preferred builder for the consumer goods company. Completion of the new high-tech warehouse is slated for mid-2026, while the facility will have features such as a 49-foot clear ceiling, a large gantry up above and robots working on the floor, which has created a need for a 12-inch thick “super flat” floor costing several million dollars extra.
