1938 Olney Ave. in Cherry Hill — Courtesy: Cushman & Wakefield
By Joshua Burd
A real estate investment trust has acquired a nearly 110,000-square-foot industrial building in Cherry Hill, marking its first acquisition in southern New Jersey.
GTJ REIT, which is nontraded, said the building is occupied by Avalon Flooring and is part of the Cherry Hill Business Park. The facility provides installation training and distribution for Avalon’s 14 retail stores throughout New Jersey, Pennsylvania and Delaware
The property at 1938 Olney Ave. traded for $7.6 million, according to brokers with Cushman & Wakefield who represented the seller and procured the buyer.
“The acquisition of this property in (Cherry Hill) is part of our longstanding strategy to purchase well-located properties along the Northeast corridor, with superior risk-adjusted returns,” Paul Cooper, CEO of GTJ, said in a prepared statement. “We believe the property’s key location off of Interstate 295 and Exit 4 of the New Jersey Turnpike, combined with Avalon’s upgrades and improvements, make this an appealing property for our first investment in southern New Jersey.”
Those improvements include LED lighting, new racking, a new HVAC system, an upgraded façade and a new office build-out, according to a news release. Avalon occupies the building under a 15-year term.
In a separate news release, Cushman & Wakefield said Avalon relocated its primary distribution facility to the site last year. The firm said the property’s tenancy, recent improvements and location drew significant investor interest.
“Avalon Flooring is a strong regional tenant that has been in business since 1963,” said Kyle Schmidt of C&W’s Metropolitan Area Capital Markets Group. “The company’s long-term lease and infrastructure investment at 1938 Olney Ave. speaks to its commitment to the building. Additionally, the property occupies a prime location with great highway access, and proximity to a vast labor pool and dense population center.”
Schmidt brokered the sale with fellow capital markets team members Andrew Merin, David Bernhaut, Gary Gabriel and Brian Whitmer, Ryan Larkin and Andrew Schwartz. The team worked with Philadelphia-based capital markets specialists Robert Yoshimura, Joseph Hill, Eric Mattson and Joe Hill Jr.
GTJ, which is based in West Hempstead, New York, touted occupancy rates of around 95 percent for the industrial markets in both Camden County and South Jersey overall.
“We are pleased to add this property to our growing portfolio and look forward to further expanding our footprint in New Jersey,” said Louis Sheinker, president and chief operating officer of GTJ. “We will look for similar investment properties in the surrounding tristate area that have attractive lease terms, appropriate rent levels and large, stable corporate tenants in the near future.”