950 Convery Blvd. in Perth Amboy — Courtesy: CBRE
(Editor’s note: This story was updated on Wednesday, Dec. 12, with comments from Gov. Phil Murphy and the state Economic Development Authority.)
By Joshua Burd
Prologis and an online luxury consignment shop have signed a lease for more than 490,000 square feet in Perth Amboy, following the approval of a 10-year, $38.9 million state tax credit package to help the retailer establish a new Northeast fulfillment center.
Brokers with CBRE on Thursday announced the full-building lease between the developer and The RealReal. The facility, 950 Convery Blvd., is a warehouse and distribution center just off Route 440 and minutes from New Jersey Turnpike Exit 10.
The CBRE team of Thomas Monahan, Stephen D’Amato, Larry Schiffenhaus, Anastasia Lazarides and Gerard Monahan represented Prologis, while Shannon D. Aja of Newmark Knight Frank and Frank Recine, formerly of NKF and now with JLL, represented The RealReal.
“The RealReal required warehousing space in a central location to meet its very specific and rapidly growing distribution requirements,” Recine said.
Tom Monahan, a vice chairman with CBRE, said the location “was ideal for the online retailer” because of its 36-foot clear ceiling height, 86-dock doors and parking for 342 vehicles and 127 trailers, all in an accessible location with access to labor.
“The building will serve as its third fulfillment center in the United States, in addition to warehouses in Secaucus, New Jersey, and Brisbane, California,” Monahan said. “The company also plans to create another 800 jobs in New Jersey, which will be a tremendous addition to the local economy.”
The lease follows last week’s approval of the $38.9 million Grow New Jersey award by the state Economic Development Authority. The RealReal told the EDA it was considering an alternate location in Bethlehem, Pennsylvania, but that Perth Amboy is the more expensive option.
Founded in 2011, the company employs more than 1,600 people across the U.S., including 300 employees at the Secaucus hub. Murphy Partners LLP represented The RealReal in its application to the EDA, which estimates the project would have a net benefit to the state of $12.4 million over 20 years.
In a new announcement this week, Gov. Phil Murphy and the EDA hailed The RealReal’s decision to grow in Perth Amboy.
“New Jersey is well-positioned to support the growth of companies like The RealReal that are built around novel concepts that are catching the eye of a new generation of consumers,” Murphy said. “We are happy to have The RealReal as part of our diverse business ecosystem as we roll out our plan for a stronger and fairer economy.”
The EDA, meantime, noted that the state Department of Labor and Workforce Development has played a role in The RealReal’s growth in New Jersey to date by providing six on-the-job-training grants for participants of the Temporary Assistance for Needy Families Program. The agency has also provided two customized training grants totaling more than $110,000 in 2017 and 2018.
The company will maintain its facility in Secaucus.
“Growing companies like The RealReal are recognizing the logistical advantages of establishing operations in New Jersey,” said Tim Sullivan, the EDA’s chief executive. “New Jersey offers proximity to major highways, ports and airports, and access to our skilled workforce will enable The RealReal to quickly find the many employees it needs to continue its expansion.”