698 Route 46 in Teterboro — Courtesy: Cushman & Wakefield
By Joshua Burd
An institutional investor has paid more than $147 million to acquire a 617,000-square-foot Amazon fulfillment center in Teterboro.
Brokers with Cushman & Wakefield on Friday announced the sale of the property, 698 Route 46, to Goodman. The real estate services firm’s announcement did not disclose the price or the name of the tenant, but the now-former owner, pension fund operator TIAA, indicated in a regulatory filing that it sold the Amazon facility for $147.1 million.
“This was an outstanding match for an institutional investor seeking a core industrial investment,” said Gary Gabriel, vice chairman with Cushman & Wakefield. “698 Route 46 offers a bulletproof location for final-mile solutions, and fundamentals have surged in the Meadowlands as tenants seek proximity to the nation’s largest MSA.”
Gabriel led the C&W investment sales team assignment with Adam Spies, Andrew Merin, David Bernhaut, Marcella Fasulo, Kyle Schmidt, and Ryan Larkin, with assistance by Jason Goldman from the firm’s leasing team.
TIAA completed the sale late last month, two years after signing a lease with the e-commerce giant and five years after acquiring what was a former Ford parts distribution center. At the time, the pension fund reportedly paid $81 million for the complex.
The brokers with C&W noted that the building, which sits on 27 acres, is fully climate controlled and has clear heights up to 32 feet. It also has wide column spacing and is cross-docked, with a location just 10 minutes from Manhattan.
“There is a scarcity of comparable buildings in the Meadowlands area, a market primarily comprised of small, 50-plus year-old industrial buildings,” Schmidt said. “Class A buildings represent only a small percentage of the Meadowlands’ 84 million square feet of standing inventory.”
He added that 698 Route 46 is one of only two buildings greater than 400,000 square feet within that subset and that the facility’s clear height places it in the top 1 percent of the Meadowlands’ 881-building inventory.