500 Halls Mill Road in Freehold — Courtesy: CBRE
By Joshua Burd
Treetop Development has added its fourth industrial building in recent months, acquiring a nearly 155,000-square-foot complex in Freehold that it now plans to redevelop.
The investment firm, which is based in Teaneck, paid $8.8 million to purchase the property at 500 Halls Mill Road, according to brokers with CBRE. Sitting on 19 acres, the single-story, 154,824-square-foot building offers easy access to routes 9 and 33, with a location that is 14 miles from the New Jersey Turnpike and eight miles from the Garden State Parkway.
The CBRE tristate investment properties team of Elli Klapper and Charles Berger, along with the CBRE advisory and transactions services team of Kevin Dudley, David Gheriani, Robert Pine and Justin Passaretti, represented Treetop Development in the negotiations. The buyer has retained the real estate services firm to oversee leasing at the building.
“This property represented the ideal investment opportunity for our client — a robust submarket with low availabilities and a strong demand for quality industrial space,” said Dudley, a senior vice president with CBRE. “Due to a low vacancy rate in the Exit 8A market, tenants are now demanding quality options in areas slightly further away from the New Jersey Turnpike in more suburban markets, and 500 Halls Mill Road fits the bill perfectly.”
In a news release Monday, CBRE noted that Treetop plans to redevelop the site to create a new cross-docked facility of about 200,000 square feet, with 36-foot clear ceiling heights. The investment firm said it was bullish on the submarket, noting that the deal marks its second acquisition in Freehold.
Treetop has also made acquisitions in Northvale and Westwood going back to late last summer, in an effort to expand beyond its long-held multifamily portfolio.
“We see the 8A market, specifically Freehold, as one that will continue to expand and we are excited to be at the forefront of such growth,” said Adam Mermelstein, a principal at Treetop. “In 2020 we expect to continue to bolster our industrial portfolio in the Garden State and are aggressively looking to buy existing industrial buildings, as well as bring to market state-of-the-art new construction industrial sites, such as 500 Halls Mill Road.”