200-250 Central Ave. in Teterboro — Courtesy: Prologis
By Joshua Burd
Prologis has added to its Meadowlands industrial portfolio with the acquisition of a fully occupied, 212,000-square-foot warehouse in Teterboro.
Company executives say the property, 200-250 Central Ave., is leased to three tenants that focus on last-mile logistics and distribution. It also sits within an area that is bounded by Interstate 80 and routes 17 and 46, making it an ideal opportunity for the industrial real estate investment trust in a submarket with high barriers to entry.
“This is definitely consistent with our overall strategy of finding core assets and acquiring them in submarkets like this,” said Bill Bumber, Prologis’ deployment officer, citing its proximity to a large consumer population, access to major highways and the ability to easily service Manhattan. “This is just a great last-mile, infill acquisition for us.”
The company purchased the building from TH Realty for an undisclosed price. Brian Fiumara, Michael Hines, Brad Ruppel and Lauren Dawicki of CBRE’s capital markets team and CBRE National Partners, along with CBRE Vice Chairman Thomas Monahan, represented the seller.
Prologis owns about 37 million square feet in the state, including 6 million square feet in the Meadowlands submarket, according to Jesse Harty, the REIT’s market officer in New Jersey. Its latest acquisition at 200-250 Central Ave. includes a section with 40-foot-clear ceiling heights and 22-foot-clear heights throughout the remainder of the structure.
He also highlighted the building’s dock door ratio and a truck court that is larger than usual for the submarket.
“Most buildings in the Meadowlands don’t really have that many dock doors and don’t really have a large truck court, so this checks all of the boxes of good functionality in this hard-to-penetrate submarket,” Harty said.
He added that “this is a target submarket where we want to grow,” citing the Central Avenue deal as an example of Prologis’ ability to find one-off deals of all sizes in order to meet that goal.
“We will look at one-off buildings and we are active,” Harty said, “and that’s going to be a focus of ours in 2019.”
Bumber added that the company is looking to grow through acquisitions, development and redevelopment when it makes sense.
“We’re open for business and looking for opportunities,” he said.