100 Jefferson Road in Parsippany — Courtesy: Turnbridge Equities
By Joshua Burd
A joint venture has sold a Parsippany industrial building for more than $85 million, marking the culmination of a two-year investment and turnaround for the 550,000-square-foot property.
The sellers, Turnbridge Equities and Harbor Group International LLC, originally acquired 100 Jefferson Road in October 2018 as part of a sale-leaseback with PNY Technologies. The investment group paid $60.3 million at the time, going on to spend $4 million to transform the property into a Class A industrial building, which included demolition of a former Pfizer lab space, an HVAC overhaul and other substantial enhancements.
On Friday, the joint venture announced that it had sold the property to an undisclosed buyer for $85.25 million. The JLL brokerage team of Jose Cruz, Marc Duval and Jordan Avanzato represented the seller.
“The sale of 100 Jefferson Road completes our business plan and showcases Turnbridge’s successful value-add investment strategy,” said Jason Davis, managing director with the investment and development firm. “The northern New Jersey market continues to be attractive to industrial investors because of its ideal location combined with a lack of new warehouse supply and continued strong demand drivers. The buyer recognized this as a unique opportunity to acquire a newly renovated, Class A asset that offered stable cash flow with significant upside given the remaining vacancy.”
Turnbridge noted that 100 Jefferson Road was only 28 percent occupied at the time of its acquisition but is now nearly 64 percent leased to PNY Technologies and Vitaquest International. PNY occupies 155,000 square feet for its global headquarters, while Vitaquest maintains 200,000 square feet and is completing construction of a manufacturing facility for its global vitamin and supplement businesses.
The property also includes a roughly 200,000-square-foot vacant suite that provides added flexibility for the new ownership, Turnbridge said. The space can be subdivided to accompany multiple tenants, utilized as expansion space for existing users or further enhanced through the construction of additional loading docks or doors.
In a news release, the firm touted the building’s location at the intersection of interstates 287 and 80, two of New Jersey’s busiest highways. It also boasts a 2.5-megawatt solar panel array on the roof, one of the largest in the state.
